How Much are Consumers Spending and Borrowing?
Last Updated: Mar 20th, 2014
- Overall credit and debit spending is up 8% in the United States in 2013, however this trails behind global spending which saw a 12% rise.
- According to the latest release from the Federal Reserve, Americans continue to increase both their revolving and non-revolving debt levels. While still down from pre-recession levels, this marks the 8th consecutive quarter of growth.
- The Q4 4.4% jump in revolving credit was the largest quarterly jump seen in the US since 2008.
- An interesting trend reported by Equifax notes that while overall credit card usage is down, retail credit debt grew 7% when compared the third quarter of 2013 to 2012. This is marked difference from the .5% growth seen on general purpose cards.
- For the first time in 20 years debit card spending lost market share to credit cards in the US.
With expected car sales increasing nearly 5% compared to 2013, Kiplinger projects retail sales to accelerate steadily in 2014, with a gain in the 5.2% to 5.7% range, a .7 percentage point jump over the 4.5% of 2013.
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit Credit cards are an example of revolving credit used by consumers.
Non-revolving credit is when credit is extended via a fixed repayment plan. These payments are paid on non-revolving credit plans.