In November, consumer credit in the U.S. increased by borrowing for student loans and automobiles.
Federal Reserve figures showed today in Washington, that the $16 billion gain followed a $14.1 billion advance in October.
The rise in the labor market was reflected by the increase in payrolls and the demand for student loans and cars.
Economics except the consumer credit to continue to grow in 2013.
Thomas Simons, a money market economics at Jefferies Group Inc in New York, gave his statement over a phone interview, “ We’ve seen four straight months now of very significant increases in overall consumer credit. I would expect that’s going to continue.”
Estimates in the Bloomberg survey for consumer credit ranged from gains of $5 billion to $20 billion.
Lending by the federal government, which is mainly for educational loans, increased by $4.9 billion in November before adjusting for seasonal variations, today’s report showed.