Input Stories

Consumers’ borrowing declined in November by the most in more than a year (Bloomberg).

What’s going on: “Total credit dropped $7.5 billion after a revised $17.3 billion gain in October, according to Federal Reserve data released Wednesday. The median estimate in a Bloomberg survey of economists called for a $10.5 billion advance. The figures aren’t adjusted for inflation.”

• Revolving debt, which includes credit cards, fell $13.7 billion, the most since the beginning of the COVID-19 pandemic.
• Nonrevolving credit, which includes auto loans and school tuition, rose $6.2 billion. This likely reflects stronger vehicle sales, which in November increased at the fastest pace in more than three years.

What it means: “The data suggest consumers are making an effort to pay down credit-card balances as borrowing rates remain near a record well above 20%. Americans have relied more on credit in recent years to help support spending amid persistent inflation.”

• The Federal Reserve has indicated fewer interest rate deductions in 2025, meaning “Americans will find only modest relief from high rates on credit-card accounts and other forms of borrowing.”