US consumer borrowing posts largest gain in 20 years

By Ovunc Kutlu

ANKARA (AA) - US consumer credit increased 11% at an annual rate in November, posting the largest monthly gain in 20 years, according to the Federal Reserve data released late Friday.

Consumer credit, which is closely correlated with consumer spending and confidence, rose by $39.9 billion to reach $4.4 trillion in November.

While the market expectation was a $19.5 billion increase, the gain in October was revised to $16.1 billion, from $16.9 billion.

Revolving credit that includes credit cards jumped 23.4% in November – the highest rate since 1998.

Nonrevolving credit, which include auto and student loans, increased 7.2% last month, the data showed.