Home | Growth | Consumer credit jumps in October

Consumer credit jumps in October

By
Font size: Decrease font Enlarge font
Consumer credit jumps in October

7% increase is largest in five months, boding well for Q4 spending.

The Federal Reserve reported today that outstanding consumer credit increased by $18.1 billion in October, or 7%, the largest increase in five months.

Analysts had expected an increase of $14.2 billion.

"The jump in credit outstanding is a positive indicator for consumer spending in the fourth quarter, adding to generally positive recent economic news."

Revolving credit, comprised primarily of credit card debt, increased $4.3 billion during the month, or 6.1% after a revised 3.1% decline in September.

Nonrevolving debt, which includes things like mortgages and student loans, increased by $13.9 billion, according to the Fed.

The jump in credit outstanding is a positive indicator for consumer spending in the fourth quarter, adding to generally positive recent economic news.  Last week, the government reported strong jobs growth and an unexpectedly robust growth in US GDP, suggesting that the tepid US recovery may be picking up steam, and increasing the odds that the Fed will commence its “tapering” of monetary stimulus as early as this month.

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha