Market Pulse
U.S. consumer credit jumps again in October
U.S. consumers increased their debt in October by a seasonally adjusted $14.2 billion, the third straight strong gain, the Federal Reserve reported Friday. The increase in October was above the $12 billion gain expected by Wall Street economists. An upward revision to September - to a $12.2 billion increase from an initial estimate of $11.4 billion - added to the sense of stronger credit growth. As in the prior two months, the surge in October credit was fueled by a jump in non-revolving debt such as student loans, personal loans and auto loans. These loans experienced a $10.8 billion jump in October after a $14.4 billion gain in the prior month. Analysts have said that student loans, now captured under the federal government subcomponent, are driving credit higher. The other major category, credit-card debt, increased $3.4 billion in the month after a $2.2 billion decrease in September. Analysts said credit card debt is not growing fast enough to foster a strong environment for consumer spending.
-Greg Robb; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 07, 2012 15:00 ET (20:00 GMT)
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