U.S. consumer credit exceeds expectations
According to data released by the Federal Reserve (Fed), U.S. consumer credit increased more than expected in September.
The rise in borrowing indicated that household demand for financing remained resilient despite elevated borrowing costs. Developments in consumer credit are an important indicator for assessing domestic demand and consumer spending trends in the U.S. economy.
Fed data showed that consumer credit increased by $27.8 billion in September, reaching $5.22 trillion. Markets had expected an increase of $13.4 billion. Revolving credit, including credit card borrowing, rose by $16.3 billion, while nonrevolving credit, which includes auto and student loans, increased by $11.6 billion. Consumer credit expanded at an annualized rate of 6.4% in September, while growth for the third quarter as a whole was recorded at 4.2%.
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