While consumer spending has backed down consumer borrowing is apparently increasing.
According to a Federal Reserve report, consumer credit rose at the annual rate 3.3 percent in January of this year. That figure was up from 1.8 percent growth in December of last year.
This doesn't seem to surprise economists as the January numbers pushed up total consumer debt by $6.9 billion to $2.52 trillion and it fell right in line with their predictions.
It seems consumers are relying on their credit cards a little more to finance their purchases.
Please email your thoughts about leaning too hard on credit cards at this time....
And thank you for making me Your Orange County Real Estate Connection.
Best regards, Michael Caruso,
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