Consumer Credit: Cars and College
December 7, 2015
Consumer Credit ROSE by $16.0 billion in October, compared with market expectations for an increase of $20.0 billion. Additionally, the prior month was revised slightly lower from $28.9 billion to $28.6 billion. Over the past year, consumer credit has increased by $228.3 billion or 7.0%. Revolving Credit, including credit cards, ROSE by $0.2 billion. Over the past year, revolving credit has increased by $38.8 billion or 4.4%. Revolving debt is now close to its October 2009 levels but still 5.1% below its July 2008 peak. Non-Revolving Credit, including auto and education loans, ROSE by $15.8 billion. Over the past year, non-revolving credit has increased by $189.5 billion or 7.9%. Of this amount, $107.4 billion, or 56.7%, appears to be due to increases in student loans held by the federal government. Non-revolving debt had been climbing fairly rapidly since mid-2010 but is now increasing moderately over the past year.
Article by contingentmacro