WASHINGTON — Borrowing by Americans rose at an annualized rate of 1.86% or about $3.349 billion in December, according to a Federal Reserve report released yesterday.
The 1.86% increase brought consumer credit up to about $2.162 trillion and followed an upwardly revised increase of $567.62 million in November, initially reported as a $648.75 million decline. It also followed a revised $7.232 billion decline in October, reported last month as an $8.404 billion drop.
The December rise was below the projection by an IFR BondData Americas poll of economists that estimated a $5.0 billion increase in consumer credit.
For the full year, consumer credit rose 3.0%, the smallest rise since a 1.1% rise in 1992.
The rise in consumer credit came as revolving credit decreased and non-revolving credit rose.
Revolving credit lines declined at an annualized rate of 1.40%, or $939.30 million, to about $801.3 billion in December, following an upwardly revised $865.42 million increase in November, first reported as a $335.29 million rise.
Non-revolving credit lines, which include automobile loans and borrowing for purchases — e.g., vacations, boats, cars and college tuition — rose at an annualized rate of 3.80%, or $4.288 billion to $1.360 trillion in December following an downwardly revised $297.80 million drop in November, first reported as a $984.04 billion decline.
For the full year, the 2.6% rise in revolving credit was the smallest since a 2.54% rise in 1980 and the 3.2% rise in non-revolving credit was the smallest since a 1.24% decline in 1992.
