Consumer Credit Rises Again In October

Consumer credit rose $13.2 billion in October but once again, to the disappointment of retailers, the gain was centered in non-revolving credit which rose $12.3 billion on the usual mix between auto financing and the government's acquisition of student loans from private lenders. Revolving credit rose only $0.9 billion in the month, down from what was a soft $1.4 billion gain in September. Slow growth in income continues to hold down the consumer's willingness to shop on credit.

Recent History Of This Indicator:
Consumer credit outstanding rose $15.9 billion in September, right in line with expectations. Once again the gain was greatly skewed to non-revolving credit which rose $14.5 billion on strength in auto financing but also once again on the government's acquisition of student loans. The revolving side, in what is once again a disappointment for retailers, rose only $1.4 billion. Until consumers start using their credit cards, growth in retail sales will remain limited.