Consumer spending continues to be a bright spot for this economy, with the latest figures from the Federal Reserve showing that consumer borrowing grew in March at the strongest rate in ten years. The increase in consumer credit - a total of $21.4 billion for the month - was the single greatest for any month since November 2001.
Most of that increase was accounted for by a new $16.2 billion in non-revolving debt, primarily student loans and car loans. Revolving debt, which includes credit cards, rose by $5.2 billion in March, the first time in three months that that particular number had increased.
Total outstanding consumer credit in the nation now totals $2.54 trillion.The all-time high for that figure is $2.58 trillion, set in July 2008, shortly before the financial system began melting down that September. Consumer debt may not be all that healthy for individual households, but it's a good sign for our overall economy.
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