Consumer Credit Surges Record $28.9 Billion

In a record report, consumer credit data are strongly confirming the strength of the consumer. Credit outstanding surged $28.9 billion in September for the largest gain in the history of the series which goes back to 1941. Nonrevolving credit, in part reflecting vehicle financing and also student loans, rose $22.2 billion. Revolving credit, reflecting a rise in credit-card debt, jumped $6.7 billion to extend an emerging run of strength that suggests consumers are now less reluctant to run up their credit cards which, for retailers certainly, is a good omen for the holidays.

Recent History Of This Indicator:
Consumer credit is expected to rise a strong $18.0 billion in September. The revolving credit component of this report, which is where credit-card debt is tracked, has been showing life and hinting, perhaps, at consumer willingness to take on debt and to greater strength for holiday sales.