Consumer Credit Rises More Than Expected

Consumer credit rose a greater-than-expected $20.8 billion in September. Both revolving and non-revolving credit posted sharp gains. Revolving credit which is where credit-card debt is tracked rose a sizable $6.4 billion after increasing $5.5 billion in August. The gain for the non-revolving component, where auto financing and also student loans are tracked, jumped $14.4 billion after $7.6 billion. This report is not about weakness but about strength, at least strength for consumer spending.

Recent History Of This Indicator:
Revolving credit has been increasing this year raising talk of slackening standards in the credit card industry. Boosted by revolving credit, consumer credit rose $13.1 billion in August with forecasters looking for $17.4 billion in September.