The dollar value of consumer installment credit outstanding. Changes in consumer credit indicate the state of consumer finances and portend future spending patterns. Why Investors Care
| Released on 1/8/07 For Nov 2006 | ||||||||
| ||||||||
Highlights
Consumers piled on the credit during November, up $12.4 billion vs. a $1.3 billion decline in October. Revolving credit, reflecting the month's strong retail sales, jumped $8.7 billion, while nonrevolving credit, reflecting solid vehicle sales, rose $3.7 billion. Having less home equity to tap and facing negative savings rates, consumers will more and more have to turn to their credit cards or to direct loans to finance purchases. Friday's retail trade data, and whether the holiday shopping season turned out strong or weak, will offer clues to December's borrowing.
![[Chart]](chart.gif)
|
The debt-to-income ratio shows how indebted consumers are relative to income. A rising ratio indicates that consumers are taking on greater debt burdens with respect to income growth. In a growing economy, this may not be dangerous. However, indebtedness could quickly become a problem if income and employment conditions turn around. The yearly change in debt outstanding shows yearly trends in debt growth and tends to be less volatile than the monthly change. |
| 2007 Release Schedule | ||||||||||||||||||||||||||
|
powered by
![[Econoday]](../../../../../../../../../images/logo.gif){kind=logo}