U.S. Consumer Credit Growth Exceeds Forecast on Autos, Loans

U.S. consumer debt rose in November at a faster-than-estimated pace as Americans continued to borrow to finance purchases.

Total credit rose $22.1 billion from the prior month, exceeding the median estimate of economists, following a downwardly revised $25 billion gain in October, Federal Reserve figures showed Tuesday. Non-revolving debt rose the most in a year.

The report is generally in-line with other data pointing to robust U.S. consumer spending, buoyed by tax cuts and a solid jobs market that added the most workers in 10 months at year- end. The borrowing likely contributed in the fourth quarter to consumption growing at a healthy but more moderate pace than the prior two periods. Revolving credit outstanding, which includes credit card debt, increased $4.77 billion after a $9.34 billion rise the prior month.

The figures show Americans borrowed somewhat more cautiously at the start of the holiday season. Non-revolving debt outstanding climbed $17.4 billion after rising $15.6 billion. Such debt, which includes loans for education and automobiles, may in part reflect industry data showing sales of vehicles remained steady in late 2018.

Lending by the federal government, which is mainly for student loans, increased by $4.6 billion before seasonal adjustment. Credit expanded at a seasonally adjusted annual rate of 6.7%, after 7.6% in the prior month. The central bank’s consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.

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