Posted on 11/07/2003 12:08:03 PM PST by Starwind
US consumer credit shot up $15.1 bln in Sept - Fed
Friday November 7, 3:01 pm ET
WASHINGTON, Nov 7 (Reuters) - U.S. consumers piled on debt in September, taking on loans for cars and other items at a rapid pace, the Federal Reserve said on Friday.
The Fed said consumer credit outstanding rose a larger-than-expected $15.1 billion to $1.972 trillion in September, its biggest gain since January. It marked an acceleration from August's revised $8.8 billion gain and was well ahead of Wall Street expectations of a $5.9 billion increase.
(Adds details) WASHINGTON, Nov 7 (Reuters) - U.S. consumers piled on debt in September, taking on loans for cars and other items at a rapid pace, the Federal Reserve said on Friday.
The Fed said consumer credit outstanding rose a larger-than-expected $15.1 billion to $1.972 trillion in September, its biggest gain since January. It marked an acceleration from August's revised $8.8 billion gain and was well ahead of Wall Street expectations of a $5.9 billion increase.
By far, most of the gain came from so-called non-revolving credit -- closed-end loans for cars, boats, mobile homes and tuition expenses. That category saw a $12.1 billion rise in debt outstanding.
Revolving debt, which tracks credit and charge card usage, posted a $3.0 billion rise in September, almost double the $1.7 billion advance seen in August.
The Fed data helps explain the surge in consumer spending that pushed U.S. economic growth to an eye-popping 7.2 percent annual rate in the third quarter.
Economists doubt that pace will be sustained ahead, in part because of household debt burdens. In a Sept. 26 speech, Fed Chairman Alan Greenspan noted household debt had risen "appreciably in recent years" but added it was being "serviced adequately." [but then at 0% auto loans and 1% fed-funds, what wouldn't?]
Ah Hah! You're the guy who's been dropping M3 and M3 velocity!
Greenspan's been lookin' for you, pal.
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