The Fed's Consumer Credit Report for November shows lots of new records.
New Records
- The monthly credit increase of $39.99 billion was the biggest jump ever.
- Revolving credit surged by $19.84 billion, the most ever.
- The month-over-month percentages rose by the most ever.
- New outstanding total in nonrevolving credit.
Consumer Credit in Billions Seasonally Adjusted
Despite the surge in in revolving credit to $1,037.41 billion, revolving credit is still below the pre-pandemic level of $1,037.41 billion.
Non-revolving government credit is mostly student loans. That category hit a new record level of $1,438.03 last month. It just missed a new record in November and now sits at $1,437.27.
Consumer Credit Annualized Monthly Percent Change
Revolving credit surged 23.39% in November, a new record.
Total credit surged 10.97%, a new record.
What Are Consumers Buying?
I suspect things they cannot afford for homes they cannot afford.
Under this theory, the unaffordable home comes first then the need to furnish it.
That nicely explains the surge in both revolving and nonrevolving credit.
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