WASHINGTON (AP) – Consumers increased their borrowing in December, with credit cards rising at the fastest pace in eight months. It could be a sign that consumer spending will accelerate as strong jobs gains give shoppers more confidence about taking on debt.
Consumer borrowing expanded by $14.8 billion in December, pushing consumer debt to a record $3.31 trillion, the Federal Reserve reported Friday. In November, borrowing had climbed by $13.5 billion.
The December rise included a $5.8 billion jump in the category that includes credit cards, marking the biggest gain since April. The result followed a $945 million drop in the category in November.
Consumer borrowing in the category that includes auto loans and student loans also rose in December, climbing $9 billion after a $14.4 billion increase in November.
Total debt is up 6.9 percent in the past year. The category covering auto and student loans is up 8.2 percent, while the credit card category has risen just 3.5 percent.