US Consumer Borrowing Rose $14 Billion in November

A man carries bags out of a department store, in Alameda, Calif., on Dec. 17, 2015. U.S. consumer spending rebounded in November after a weak showing in October, while a key inflation gauge posted the fastest year-over-year increase in 11 months. The Commerce Department said Wednesday, Dec. 23, that consumer spending increased 0.3 percent in November after an essentially flat reading in October and a 0.2 percent gain in September. Personal income rose a solid 0.3 percent in November, reflecting solid gains in wages and salaries, after a 0.4 percent October increase. AP Photo/Ben Margot

WASHINGTON—U.S. consumers boosted their borrowing in November, as higher credit card spending partially offset slower growth in auto and student loans.

Consumer borrowing rose $14 billion in November to a fresh record high of $3.53 trillion, the Federal Reserve said Friday. Economists believe that strong job gains in the labor market will boost consumer confidence and convince households to finance purchases by taking on more debt.

For November, the category that covers credit cards increased $5.7 billion after a much smaller $65 million gain in October.

READ MORE

• US Employers Hire at Blistering Pace, Defying Global Trends
• Equity Investing in 2016: Bull Market Still Has Legs
• The World Wary as US Federal Reserve Declares End to Debt Crisis

The category that covers auto loans and student loans rose by $8.3 billion. That was the smallest monthly gain for this category in more than three years.

In its monthly credit report, the Fed does not break down auto loans and student loans in the seasonally adjusted data. However, analysts said they believed the slowdown occurred in student loans given that car sales have been so strong in recent months.

The overall monthly gain of $14 trillion was slightly below the October gain of $15.6 trillion. It was the smallest overall gain since an increase of $10.8 billion last January.