04/07/2021 | Press release | Distributed by Public on 04/08/2021 10:09
By SBE Council at 7 April, 2021, 8:52 pm
by Raymond J. Keating-
The latest consumer credit numbers point to growing confidence among consumers.
While retails sales were down in February (in part due to weather issues), consumer credit actually spiked up - after being flat in January.
Specifically, the Federal Reserve reported:
'In February, consumer credit increased at a seasonally adjusted annual rate of 7.9 percent. Revolving credit increased at an annual rate of 10.1 percent, while nonrevolving credit increased at an annual rate of 7.3 percent.'
February 2021 marked only the second monthly increase in revolving credit (mainly, credit cards) since pre-pandemic February 2020 (the other was in September 2020).
Source: Federal Reserve Bank of St. Louis, FRED
Again, this increase in revolving credit in February would seem to point to enhanced consumer confidence in terms of the economic and employment recovery. We'll see if growth holds in coming months.
Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.