The Federal Reserve Board reported that U.S. consumer credit outstanding rose 8.8 percent at the annual rate in November, up from a 6.5 percent gain in October. Total consumer credit was $3.827 trillion in November, with $1.023 trillion in revolving credit and $2.805 trillion in nonrevolving credit. The monthly increase in November was the largest in 16 years, which no-doubt helped to boost consumer spending for the month. Across the past 12 months, consumer credit has increased 5.3 percent.
Revolving credit, which includes credit cards and other credit lines, jumped 13.3 percent in November, extending the healthy 9.9 percent increase seen in October. This suggests Americans are less cautious in their spending and more willing to use their credit cards for their purchases than just a few months ago, which should provide a significant boost to holiday sales. Meanwhile, nonrevolving credit, which includes auto and student loans, accelerated from 5.3 percent growth in October to 7.2 percent in November. On a year-over-year basis, revolving and nonrevolving credit outstanding has risen 5.7 percent and 5.2 percent, respectively.