SUMMARY
- Consumer credit unexpectedly declined in November, falling by $7.5 billion—the largest decline in over a year—after a $17.3 billion gain in October. Outstanding credit card and other revolving debt declined by $13.7 billion, the most since early in the pandemic. Non-revolving credit (including auto loans) increased by $6.2 billion in November.
- With borrowing rates still near record highs, consumers may be making more effort to pay down credit card debt. The rise in non-revolving credit likely reflected rising auto sales, which accelerated at the fastest pace in three years over November. Credit card interest rates stood at 22.8% in November, with a 60-month new auto loan was at 7.8%. Both are marginally lower than the prior quarter.
- According to the Adobe Analytics 2024 Holiday Spending Survey, consumers spent a record $241 on online sales during November and December. December 2 was the largest spending day, with approximately $13.3 billion spent in one day, followed by November 29, which racked up $10.8 billion in sales.
- However, buy-now-pay-later (BNPL) saw continued growth in 2024 and throughout the holiday season, rising by 10% over the past year. This indicates that some consumers are relying on credit to continue spending.
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