Consumer borrowing jumps
Consumer borrowing increased at an annual rate of 10% in November, the largest jump in a decade, as Americans were more comfortable using their credit cards early in the holiday season, the Federal Reserve reported.
Overall consumer credit surged $20.4 billion in November from the previous month to $2.48 trillion, the Fed said Monday. The percentage increase was the largest since an 18.4% jump in November 2001.
The figures include most short- and medium-term credit, such as increased auto and student financing, but not mortgages or home-equity loans.
Outstanding credit card debt increased 8.5% in November, and non-revolving debt such as car loans increased 10.7%, the Fed said.
With the exception of a 5% drop in consumer credit in August, when consumer confidence also plunged on European debt fears, borrowing was up every month last year amid the economy’s sluggish recovery.
