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

US Consumer Credit: Developments in October 2023

According to data released by the Federal Reserve (Fed), consumer credit in the US rose by 9.2 billion dollars in October 2023, reaching a total of 5 trillion 84.1 billion dollars. This figure fell significantly short of the anticipated 11.8 billion dollar increase in the markets. This situation has raised some concerns about consumer confidence and spending trends.

Distribution by Credit Types

The increase varies by credit type. Credit cards and similar revolving loans saw a monthly increase of 5.4 billion dollars in October. On the other hand, non-revolving loans such as home, auto, and student loans increased by 3.7 billion dollars. This disparity can be interpreted as a reflection of changes in consumers' needs and financial situations.

Yearly Changes in Credit

The annual increase in consumer credit was determined to be 2.2%. The annual growth in revolving loans reached a noteworthy level of 4.9%, while non-revolving loans saw an increase of 1.2%. These figures indicate that consumers sometimes prefer to take on debt, but there is also an increasing shift towards specific financial products.

Future Expectations

Expectations for the US economy in the coming period are closely linked to increasing credit demands and overall market conditions, as well as the direction of interest rates. The implications of this increase in consumer credit on the overall health of the economy and potential scenarios will be closely monitored by investors and financial analysts.