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CONSUMER CREDIT EXPANDS BY $18.8 BILLION

Sam Ro   

CONSUMER CREDIT EXPANDS BY $18.8 BILLION
Stock Market1 min read

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New Federal Reserve data shows that consumer credit balances expanded by $18.756 billion in December.

This was much more than the $12.0 billion expansion expected by economists.

Revolving credit balances, which include things like credit cards, increased by $5 billion. This was the biggest gain in seven months.

Non-revolving balances, which include things like auto and student loans, grew by $13.8 billion.

The financial crisis was followed by sharp contraction in credit balances. This so-called balance sheet recession put tremendous pressure on the economy.

According to Bloomberg, this was the biggest gain in consumer credit balances since February 2013.

More to come...

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