This Article is From Feb 08, 2018

Consumer Credit Growth in U.S. Cools After November Surge

Consumer Credit in U.S. Growth Cools After November Surge

Author: Katia Dmitrieva
Business
Feb 08, 2018 07:14 am IST
- Published On Feb 08, 2018 07:10 am IST
- Last Updated On Feb 08, 2018 07:14 am IST

Read Time: 2 mins

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(Bloomberg) -- An $18.4 billion pickup in U.S. consumer debt in December followed an upwardly revised November increase, Federal Reserve data showed Wednesday.

Highlights of Consumer Credit (December)
Increase in total credit compares with $20b est. and followed a revised $31b November gain (prev. $28b) Debt outstanding rose an annualized 7.7% in 4Q after a 3.6% gain in 3Q December revolving credit outstanding rose $5.1b after an $11b November increase that was the largest in a year Non-revolving debt outstanding climbed $13.3b after a $20b surge Credit increased 5.4 percent in 2017 after 6.7 percent gain year earlier

Highlights of Consumer Credit (December)

Increase in total credit compares with $20b est. and followed a revised $31b November gain (prev. $28b)
Debt outstanding rose an annualized 7.7% in 4Q after a 3.6% gain in 3Q
December revolving credit outstanding rose $5.1b after an $11b November increase that was the largest in a year
Non-revolving debt outstanding climbed $13.3b after a $20b surge
Credit increased 5.4 percent in 2017 after 6.7 percent gain year earlier

Key Takeaways

Fourth-quarter revolving debt accelerated from the previous three months, increasing at an annualized 9.7 percent rate. The advance in revolving debt shows larger credit-card balances during the holiday-shopping season. The increase in non- revolving credit outstanding probably reflects steady purchases of motor vehicles.

Other Details

Lending by the federal government, which is mainly for student loans, increased by $10.7 billion in fourth quarter, before seasonal adjustment
Motor vehicle loans outstanding increased $11.9 billion, also 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

--With assistance from Chris Middleton

To contact the reporter on this story: Katia Dmitrieva in Washington at edmitrieva1@bloomberg.net.

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle

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