Borrowing Up As Economy Improves
Consumers are showing more confidence in the economy by increased borrowing.
The jump in borrowing was largely because people took out more loans to buy cars and swiped their credit cards frequently to purchase holiday gifts.
In November, total consumer borrowing rose to seasonally adjusted $2.48 trillion. That’s nearly at pre-recession levels and up from a post-recession low point of $2.39 trillion reached in September 2010. Borrowing had tumbled for more than two years during and immediately after the recession.
Since then, consumers have increased their borrowing in 13 of the past 14 months. Americans are taking on more debt after seeing the unemployment rate drop and the economy improve, albeit modestly.Click here for reuse options!
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