Reply #123: A bit more detail on that Consumer Credit report

[54anickel]

http://www.portervillerecorder.com/articles/2005/01/07/ap/business/d87fi0ug0.txt

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Consumer credit dropped by $8.7 billion in November from the previous month, marking the largest over-the-month decrease since the Fed began keeping records in 1943. The cutback represented a 5 percent decline at a seasonally adjusted annual rate.

The last time consumers trimmed their borrowing was in November 2003.

Economists, surprised by the magnitude of the cutback, cited a number of possible reasons for the more cautious approach to borrowing.

Consumers put off stocking up on holiday merchandise _ which normally shows up on credit card bills _ waiting instead for deeper discounts, economists said.

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Some analysts noted that the consumer credit figure can swing widely from month to month, and they cautioned against reading too much into the steep one-month drop. Still, they said the credit figures bear watching and may raise questions about consumers' appetite for spending in the months ahead.

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