Consumer credit increased in November, led by a rise in student and auto loans, the Federal Reserve reported Jan. 8.
Borrowing by consumers rose by $12.3 billion after a revised $17.9 rise in October. Economists’ median forecast called for a $14.3 billion rise, Bloomberg News reported.
“Credit conditions are improving,” Nariman Behravesh, chief economist at IHS Inc. told Bloomberg. “We are seeing consumers beginning to take on more debt, and that’s part of the recovery.”
Nonrevolving credit, such as loans for vehicle purchases and college tuition, increased $11.9 billion after a $13.9 billion rise in October.
“Away from one-month spikes or swings, you’ll see a continued, gradual pickup in credit as we go through 2014,” Brian Jones, senior U.S. economist at Societe Generale, told Bloomberg. “That’s because consumer credit should remain solid.”