Posted on 01/08/2004 2:46:38 PM PST by Starwind
UPDATE - US consumer credit up $4.1 bln in November-Fed Thursday January 8, 3:34 pm ET
(Adds details, quotes)
WASHINGTON, Jan 8 (Reuters) - U.S. consumers took on debt in November, but at less than half the pace seen in October, a Federal Reserve report released on Thursday showed.
The Fed said consumer debt outstanding rose by $4.1 billion in November, after a sharply revised rise of $8.3 billion in October. The November data was close to Wall Street expectations for a $5.0 billion advance.
October's gain had initially been reported as a rise of only about $940.7 million. In a footnote to Thursday's release, the Fed noted the data series had been revised back to 1998 to include updated adjustments for seasonal patterns in borrowing, as well as new data on nonfinancial lenders. The Fed also said the new seasonal adjustment factors were a "major contributor" to the October revision.
The amount of total debt outstanding also rose with new adjustments. Total consumer debt stood at a seasonally adjusted $1.995 trillion in November, well above the $1.977 trillion reported for October before the adjustments were made.
Looking past the revisions, Michael Moran, chief economist with Daiwa Securities America in New York, said the numbers showed a "a healthy rise" in credit use.
November's gain was concentrated in so-called non-revolving debt -- closed-end loans for cars, tuition expenses, mobile homes and other items. Non-revolving debt gained by $4.6 billion, more than offsetting a $600 million fall in credit and charge card debt. It was the first decline in revolving credit since June.
In October, revolving debt rose by $2.7 billion while non-revolving debt jumped by $5.8 billion.
Daiwa's Moran said the unexpected downturn in credit and charge card use in November could have been related to a slow and later-than-usual start to the holiday shopping season.
Still, he said household balance sheets are in good shape, and should allow consumer spending, which drives two-thirds of the U.S. economy, to make gains. "I think they're going to provide good support for the economy," he said.
| Rank | Location | Receipts | Donors/Avg | Freepers/Avg | Monthlies | |||
|---|---|---|---|---|---|---|---|---|
| 57 | Turkey | 10.00 |
1 |
10.00 |
10 |
1.00 |
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