As expected, the Federal Reserve reported today that consumer credit expanded by an unusually large amount in November. Non-revolving debt rose by $16.6 billion, which is only slightly more than the recent average, and less than the average flow three years ago. It was instead revolving consumer credit where balances expanded the most (+$11.2 billion). As noted last week, that is in keeping with what appears to be renewed weakness in the labor market following a small uptick mid-year last year.
For November, it was one of the largest one-month gains for revolving credit going back to the Great “Recession.” While there has been some debate about what that means in trying to assess the overallRead More »