Saturday, December 27th0.2°C
24624
23931

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

23643


Recent Trending




Today's Market
S&P TSX14607.31+13.279
S&P CDNX674.32-3.13
DJIA18062.19102.75
Nasdaq4806.859+33.387
S&P 5002088.77+6.89
CDN Dollar0.8601-0.0008
Gold1194.40+20.90
Oil55.14-0.70
Lumber335.20-0.90
Natural Gas3.03-0.001

 
Okanagan Companies
Pacific Safety0.130.00
Knighthawk0.01-0.005
QHR Technologies Inc1.25+0.02
Cantex0.035+0.005
Anavex Life Sciences0.185-0.0138
Metalex Ventures0.05-0.005
Russel Metals25.98+0.15
Copper Mountain Mining1.54+0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.0092-0.0018
Sunrise Resources Ltd0.050.00
Mission Ready Services0.25-0.01

 
23744


23643

FEATURED Property
2081257337 - 4205 Gellatly Road
2 bedrooms 2 baths
$419,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


First-time homebuyer mistakes

If you’re on the hunt for your first home and want to have a smooth and successful home purchasing experience avoid these common first-time homebuying mistakes.If you are looking for your first ...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...

_



24150

24111


Member of BC Press Council


24262