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

US Consumer Credit: Developments in October 2023

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

Distribution by Credit Types

The increase varies by type of credit. Credit cards and similar revolving credits recorded a monthly increase of 5.4 billion dollars as of October. On the other hand, non-revolving credits such as mortgages, auto loans, and student loans saw an increase of 3.7 billion dollars. 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 annual increase in revolving credits reached a notable level of 4.9%, while non-revolving credits showed a rise of 1.2%. These data indicate that consumers sometimes prefer to incur debt, but there is also an increased trend towards certain financial products.

Future Expectations

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