debt! debt! debt!

  1. 678 Posts.
    Debt-led recovery?
    Get those credits cards and live in prosperous times ;-)

    US Consumer Credit Sep Gain Much Bigger Than Expected

    By Deborah Lagomarsino
    DOW JONES NEWSWIRES

    WASHINGTON (Dow Jones)--U.S. consumers added to debt loads in September at the fastest pace since January, the Federal Reserve said Friday.

    Consumer credit outstanding rose $15.1 billion in September to $1.972trillion. That follows a revised $8.8 billion rise in August to $1.957 trillion, originally reported up $8.2 billion.

    The September consumer credit rise was more than twice as big as Wall Street expected. Analysts had forecast consumer debt growth to rise by $6.0 billion in September.

    Consumer credit data tend to be highly volatile from month to month and is frequently revised.

    The September consumer credit rise was led by non-revolving credit, while revolving credit also rose.

    Non-revolving credit rose by $12.1 billion in September, its biggest increase since January, after rising by a revised $7.1 billion in August, first reported up $7.0 billion. Non-revolving credit includes all loans not part of revolving credit, such as those for automobiles, motor homes, education, boats, trailers or vacations.

    Revolving credit, such as credit cards, rose $3.0 billion in September after rising by a revised $1.7 billion in August, first reported up $1.2 billion.

    In annual terms, consumer credit rose at a 9.7% rate in September after growing at a revised 5.5% annual growth rate in August, the Fed said. Revolving credit rose at a 5.0% annual rate in September after rising at a revised 2.9% annual rate in August. Non-revolving credit grew at a 12.5% annual rate in September, up sharply from a 1.7% rate in August.

    For the third quarter, consumer credit grew at a 6.4% annual pace, up from the 4.8% pace in the second quarter. In the third quarter, revolving credit grew at a 3.1% pace, up from 3.0% in the second quarter, and non revolving credit grew at an 8.4% rate, up from 5.9% in the second quarter.

    -By Deborah Lagomarsino, Dow Jones Newswires; 202-862-9255;
    [email protected]
 
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