Dramatic decline in borrowing — $17.5 billion in November versus $5 billion
Consumer borrowing dropped by a record amount in November, the 10th straight month that Americans relied less on credit cards and banks hoarded their cash.
The dramatic decline in borrowing — $17.5 billion in November versus $5 billion that analysts had projected — underscores the battered state of household finances and the uncertain employment picture. The jobless rate is lingering at 10% .
Households are struggling “to put their balance sheets in order after the credit and asset bubbles popped,” Joshua Shapiro, chief U.S. economist at MFR Inc., told Bloomberg. “Household de-leveraging still has considerably further to go.”
See the Federal Reserve’s latest numbers here.