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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BuilderBytes' MetroIntelligence Economic Update for 12/3/12

Please click here to see the edition of BuilderBytes for 12/3/12 on the Web.

In this issue of the MetroIntelligence Economic Update, I covered the following indicators:

• Federal Reserve reports expanded economic activity 'at a measured pace'
• Personal income flat in October but savings rate rises from 3.3% to 3.4%
• Chicago PMI improves in November after falling for two months
• Initial unemployment claims fall by 23,000 in latest report
• Mortgage applications fall by 0.9% in latest survey, although purchase loans rose by 3%

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