US: Consumer credit expansion slowed slightly in September - Nomura

In the US, consumer credit expansion slowed slightly in September, rising $10.9bn to $3.95tn, notes the research team at Nomura.

Key Quotes

“For the previous six months, consumer credit expanded about $14.2bn every month on average. Revolving credit fell slightly by $0.3bn to $1.04tn.”

“Given healthy consumer fundamentals, this decline appears transitory. Nonrevolving credit rose $11.2bn to $2.91tn. While the monthly pace of nonrevolving credit expansion slowed somewhat in September, this slowdown follows two consecutive months of strong increases.”

“While rising interest rates may adversely affect consumer consumptions of autos and other durable household products, the momentum in personal spending growth remains healthy.”