Consumer Credit Surges $12.3 billion in November

After taking a hit in October, consumer credit in the U.S. leapt forward by $12.33 billion in November as Americans rekindled their torrid love affair with credit card spending.

The lion’s share of the increase came from a sharp expansion in outstanding credit card debt.  U.S. consumers increased credit card spending 11.9%, or $8.56 billion, in November, the Federal Reserve announced Monday.  October’s credit card numbers were also revised up to 4.23%.  Total credit card debt outstanding in the U.S. is now at $872.62 billion.

Economists had expected an increase in consumer credit for November coming off of a drop in October of $1.25 billion.  But most predicted a much tamer reading.  Reuters’ poll of economists predicted a $5.2 billion increase, while MarketWatch’s experts said credit would expand by about $4.5 billion in the month.

Even revolving credit, like car loans, rose in November.  Revolving credit was up 3%, or $3.77 billion in the month after dropping 3.39% in October.