All Posts Tagged: revolving credit

U.S. Outlook: Consumer credit spigot remains open

Scott Anderson
Chief Economist

Solid gains in consumer credit growth are an integral part of our sanguine outlook for near-term consumer spending.

Graph showing the dramatic rise in student loan debt in last 15 yearsThe Federal Reserve’s latest consumer credit report shows total outstanding consumer credit at an all-time high in January, up 6.5% from a year ago.

For more details, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on March 25.

Key observations:
  • Growth in non-revolving credit, mostly auto and student loans, remains robust.
  • Despite increases in consumer credit outstanding in recent years, household debt has been brought under control in the aggregate, giving the green light to additional consumer borrowing in the future.
  • Rising personal income and the low interest rate environment have been instrumental in alleviating the financial burden of U.S. households during this expansion.
  • The only area of concern that remains is the large buildup in student loan debt.
Click here to read my full report. Read More ›

U.S. Outlook: Waiting for consumer credit to normalize

Scott Anderson
Chief Economist

We’ve been waiting to see some growth in consumer credit, and it looks like some encouraging signs could ramp up in the months ahead.

Read More ›