US consumer credit for the month of October
- consumer credit for October comes in at $7.228 billion vs. $15.5 billion estimate
- prior month was revised lower to $15.03 billion from $16.21 billion previously reported
- revolving credit fell by $-5.47 billion. It is down -6.7% annual
- non-revolving credit increased by $12.69 billion. Revolving credit is up 4.8% annually
Nonrevolving credit includes things like auto loans and school loans. Revolving credit is a proxy for credit card spending. That can be highly correlated to retail sales. The lower revolving credit this month is indicative of care higher employment as a result of Covid and perhaps the expectations for further retrenchment when things like unemployment benefits begin to run out (at the end of the year).
