Credit, Economy and Financial News from TruckingFactor.com

Consumer Borrowing Down in November

Consumers sharply reduced their borrowing in November, as they scaled back on spending in light of the recession. The Federal Reserve says consumer credit fell at an annual rate of $7.94 billion in November, down 3.7% from October and the biggest percentage drop since a 4.3% decline in January 1998. The drop in November followed a 1.3% decline in October. The decline in November was led by a 3.9% plunge in the category that includes auto loans. Borrowing in the category that includes credit cards fell 3.4%. The Fed's report on consumer credit does not cover mortgage loans or other borrowing secured by real estate such as home equity loans.

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Date Last Updated: 01/15/2009