In a post last month, we talked about how the U.S. saw a large increase in consumer credit in November. Debt-related statistics that were recently reported on by Reuters indicate that the U.S. saw another significant rise in consumer credit in December.
Reportedly, in December, the amount of credit consumers in the U.S. held went up by $19.31 billion. This increase is significantly higher than what analysts Reuters had polled predicated for the month. This increase makes December the second month in a row in which the U.S. has seen a consumer credit increase which was around the $20 billion mark.
It has been reported that revolving credit (a credit category that includes things like credit card debt) went up by $2.76 billion in December. However, this increase seems rather modest compared to the increase that occurred in non-revolving credit (a credit category that includes things like student loans and auto loans) in December. Reportedly, between November and December, the amount of non-revolving credit that U.S. consumers held went up by $16.55 billion. Reportedly, this is the largest monthly rise in non-revolving credit that the U.S. has seen in a decade.
Thus, it appears that the big increase in consumer credit in December was largely driven by non-revolving credit. This was similarly the case with the spike in consumer credit in November.
Thus, it appears that, as of recent, the U.S. has been experiencing a trend of large increases in non-revolving consumer credit and consumer credit as a whole. One wonders how long these trends will continue. One also wonders what effects these trends and their causes have had and/or will have on consumers in Florida and the rest of the country.
Source: Reuters, “UPDATE 1-U.S. consumer credit rises $19.3 bln in December,” Feb. 7, 2012