Tue Sep 10, 2019, 11:30 AM

U.S. Consumer Debt Surges on Jump in Credit-Card Balances

Reade Pickert
BloombergSeptember 9, 2019

U.S. Consumer Debt Surges on Jump in Credit-Card Balances
(Bloomberg) -- U.S. consumer borrowing swelled in July by the most since late 2017 as Americans carried larger credit-card balances to fund both everyday and online purchases.

Total credit rose by $23.3 billion from the prior month, exceeding all estimates in a Bloomberg survey of economists, Federal Reserve figures showed Monday. Revolving debt outstanding increased by $10 billion, also the most since November 2017, while the growth of non-revolving credit was little changed from a month earlier.

Key Insights

The surge in borrowing indicates Americans, supported by higher wages, were feeling confident enough about their financial situation to continue borrowing and spending. The economy, beset by weakness in manufacturing, housing and capital investment, remains highly dependent on the U.S. consumer to keep driving the expansion.
The gain in revolving debt includes purchases made during Inc.’s Prime Day event, which the company said surpassed sales from the previous Black Friday and Cyber Monday combined. Other retailers, like Walmart Inc. and Best Buy, offered competing discounts as well.

At the same time, bigger credit-card statements may indicate households feel they are overextended and may become more tentative about spending.Data out last week showed sustained job growth, higher- than-expected wage gains and a labor market that continues to draw more people off the sidelines and into the labor force.
Persistent strength in the jobs market could help support further consumer borrowing.The gain in revolving credit outstanding, which includes credit card debt, followed a $186 million drop in June.Non-revolving debt outstanding advanced $13.3 billion after rising $14 billion. Such debt includes loans for school and cars.


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Reply U.S. Consumer Debt Surges on Jump in Credit-Card Balances (Original post)
RCW2014 Sep 2019 OP
quad489 Sep 2019 #1

Response to RCW2014 (Original post)

Tue Sep 10, 2019, 12:08 PM

1. ''Americans carried larger credit-card balances''...been happening for decades by the vain...

...who for some retarded childish reason want to keep up with the jones's.

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