Consumer Credit in the U.S. Increased Below Expectations in October

US Consumer Credit: Developments in October 2023

According to data published by the Federal Reserve, in October 2023, consumer credit increased by $9.2 billion, reaching a total of $5.084 trillion. This amount fell significantly short of the anticipated $11.8 billion increase in the markets. This situation has raised some concerns about consumer confidence and spending trends.

Distribution by Type of Credit

The increase varies by type of credit. Credit cards and other revolving credit saw an increase of $5.4 billion on a monthly basis as of October. On the other hand, non-revolving credit such as home, auto, and student loans recorded an increase of $3.7 billion. This difference can be interpreted as a reflection of changes in consumer needs and financial situations.

Yearly Change in Credit

The annual increase in consumer credit was determined to be 2.2%. The yearly increase in revolving credit reached a notable level of 4.9%, while non-revolving credit rose by 1.2%. This data indicates that consumers sometimes prefer to borrow, while also showing an increased shift toward certain financial products.

Future Expectations

Expectations for the US economy in the upcoming period are closely related to rising credit demand and general market conditions, as well as the trajectory of interest rates. The effects of this increase in consumer credit on the overall health of the economy and possible scenarios will be closely monitored by investors and financial analysts.