U.S. consumer credit rebounds in January

By Greg Robb

Borrowing up 4.7% after 0.2% gain in prior month

The numbers: Total consumer credit rose $19.5 billion in January, up from a slight $919 million gain in the prior month, the Federal Reserve said Thursday.

That translates into a gain at a 4.7% annual rate, up from an 0.2% rise in December.

The increase was almost double expectations. Economists had been expecting a $10 billion gain in credit in January, according to the Wall Street Journal forecast.

Key details: Revolving credit, like credit cards, accelerated at a 7.7% rate after a 2.4% gain in December.

Non-revolving credit, typically auto and student loans, rose 3.6% after a 0.6% drop in the prior month. That category of credit is typically much less volatile.

The Fed's data does not include mortgage loans, which is the largest category of household debt.

Big picture: Some economists are worried that high borrowing costs are putting more stress on consumer finances.

New York Fed President John Williams said last week that he saw a risk that consumer strength, a major driver of growth last year, might fade quickly.

Market reaction: Stocks DJIA SPX were higher in afternoon trading on Thursday while the 10-year Treasury yield BX:TMUBMUSD10Y slipped to 4.09% on a perceived dovish tilt to Federal Reserve Chair Jerome Powell's testimony to Congress.

-Greg Robb

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03-07-24 1535ET

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