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.
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.
• 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.