The Housing Chronicles Blog: Consumed credit growth rate dipped in December as savings rate fell to lowest level since 2005

Wednesday, February 7, 2018

Consumed credit growth rate dipped in December as savings rate fell to lowest level since 2005

Consumer borrowing increased $18.4 billion in December to a record seasonally adjusted $3.84 trillion, for an annual growth rate of 5.8%. This was down from a revised $31 billion rate in the prior month. For all of 2017, consumer credit rose at a 5.4% rate, down from a 6.7% rate in the prior year. Most of this slowdown was for nonrevolving credit.  Still, the U.S. savings rate fell to 2.4% in December, the lowest level since 2005, indicating that households are racking up more debt due to high consumer confidence, out of necessity, or some combination of the two.

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