US: Strong expansion in consumer credit – Nomura

US consumer credit rose by $18.4bn (+5.8% at an annual rate) to $3.841trn in December following a strong $31.0bn gain in November (revised up from a previously reported $28.0bn increase), notes the research team at Nomura.

Key Quotes

“Consumer credit expansion picked up in Q4 to an annualized pace of 7.7%, from a 3.6% gain in Q3. Revolving credit rose a steady $5.1bn following a sharp increase in November. Non-revolving debt increased by $13.3bn after a $20.0bn advance. The continued robust expansion of outstanding consumer credit appears consistent with strong consumer fundamentals such as strong labor market conditions and healthy personal financial gains.”