Friday, October 31st10.5°C
23888
23004

US consumer borrowing rose in November, led by increases in auto and student loans

WASHINGTON - Americans increased their borrowing in November, led by continued gains in auto and student loans.

The Federal Reserve said consumers increased their borrowing by $12.3 billion in November to a seasonally adjusted $3.09 trillion. That is a record level and follows an October increase of $17.9 billion.

Almost all of the November increase came from an $11.9 billion rise in borrowing for auto loans and student loans. Borrowing in the category that covers credit cards ticked up only $457.8 million after surging in October.

Credit card borrowing plunged after the Great Recession and consumers remain cautious about taking on high-interest debt. It has gradually increased to its highest level in more than three years, but it's still 16 per cent below its peak of more than $1 trillion reached in 2008.

The combination of weak hiring and meagre wage gains has left many Americans reluctant to charge their purchases.

Through November, the measure of auto loans and student loans has risen 8.2 per cent from a year ago and has increased in every month but one since May 2010. The Federal Reserve Bank of New York quarterly report on consumer credit shows student loan debt has been the biggest driver of borrowing since the Great Recession officially ended in June 2009.

But consumers are starting to open their wallets, even if they have resisted using credit cards. Auto sales ended the year strongly, while other purchases have picked up.

Consumer spending rose 0.5 per cent in November, the biggest increase in five months, according to the Commerce Department. That solid showing suggests solid economic growth in the final three months of 2013.

The Fed's borrowing report tracks credit card debt, auto loans and student loans but not mortgages, home equity loans and other loans.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14611.81+153.119
S&P CDNX767.31-4.34
DJIA17390.32194.90
Nasdaq4630.742+64.604
S&P 5002018.04+23.39
CDN Dollar0.8874-0.006
Gold1171.40-27.20
Oil80.50-0.40
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.97+0.75
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.3750.00

 



23028

FEATURED Property
20713482779 w 8TH ST
1 bedrooms 1 baths
$800
more details
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22786