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December 7, 2017 4:30 PM, EST
Consumer Borrowing Increases by Most in Nearly a Year
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U.S. consumer credit outstanding rose in October by the most since November 2016 on larger credit-card balances, Federal Reserve data showed Dec. 7.

Highlights of Consumer Credit For October

• Total credit rose $20.5 billion (estimated $17 billion) or at a 6.5% annualized rate after a downwardly revised $19.2 billion gain.

• Non-revolving debt outstanding climbed $12.2 billion.

• Revolving credit outstanding increased $8.3b, also the biggest gain since November 2016.

Key Takeaways

The 9.9% annualized increase in revolving debt, which includes credit cards, shows Americans carried bigger balances heading into the holiday-shopping season.

While incomes are rising and home and stock values have boosted household net worth to a record, consumers with fewer assets may find it difficult to boost their spending as their debt burdens mount.

Other Details

• Lending by the federal government, which is mainly for student loans, increased by $5.1 billion in October, before seasonal adjustment.

• Fed’s consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.