We generally look to consumer confidence surveys to take the pulse of the American economy, but it's probably better to look at what the nation is doing, as opposed to what it's saying. And according to figures released yesterday by the Federal Reserve, Americans are feeling more and more confident about their money.
Consumer borrowing rose in December for the fifth month in a row. The total amount of consumer debt jumped by $14.6 billion for the month, following a $15.9 billion rise in November. Much of that was for new car purchases; non-revolving debt, which is primarily auto loans and college tuition loans, increased by more than $18 billion in December.
This is the reason we measure consumer confidence to begin with, because we need people to spend money to keep our economy humming. If people have enough confidence to take out loans to buy bg-ticket items - well, that's a very positive sign.
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