Consumer Credit Rises For Second Month

We had losses for literally nineteen months before the change.  The jump is not all in credit cards as some is attributed to non-revolving credit and student loans.

Revolving credit, i.e. credit cards and other renewing credit, did fall as the economists were expecting.  The October shrinkage was another $5.6 billion to $800.5 billion.  Credit card borrowing has continued to shrink despite this overall credit growth.

Non-revolving credit, i.e. auto loans and student loans, was up almost 7% by $9 billion to about $1.6 trillion.

This is still a story that remains a “glass half-empty” in the description.  Just keep in mind that there is a lag here as this is October data rather than November data.  Much of it may have already changed as consumers are gearing up for the holidays.

The flip side to a ‘half-empty’ argument is that maybe this just implies that Americans are much more frugal in their credit card spending habits.  That is a trend that does not exactly lead to a robust consumer spending economy, but it makes for healthier finances of Joe Public.

JON C. OGG