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New data shows that consumer credit use rose, but at a far slower pace than government analysts predicted showing that American consumers are not as confident that they’ll be able to pay their debt off in the near future.

Consumer credit rose 1.9 percent over last year, according to the Federal Reserve. The rise equaled $6.8 billion in borrowing, but that was far, far below the expected $21.5 billion that economist forecasted, Breitbart News reported.

Breitbart News added:

Revolving credit, which is primarily comprised of credit cards, declined $218.7 million, the first drop since April. The more stable category of non-revolving credit, primarily auto and student loans, rose $7.1 billion.

Consumer credit is closely watched by economists because expansions of consumer credit tend to lead to expansions of overall economic activity. That’s because credit use rises when consumers are optimistic about their economic prospects.

The figures for January are all the more striking because they are not adjusted for inflation. Prices in January were up 7.5 percent compared with a year ago, which means real consumer credit fell significantly from a year ago. Compared with December, consumer prices rose 0.6 percent.

Clearly, American households are not as confident in their future if they are retrenching, and holding back from taking car loans, and adding credit card debt.

It all adds up to more failure by Joe Biden.

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Warner Todd Huston

Warner Todd Huston has been writing editorials and news since 2001 but started his writing career penning articles about U.S. history back in the early 1990s. Huston has appeared on Fox News, Fox Business Network, CNN, and several local Chicago News programs to discuss the issues of the day. Additionally, he is a regular guest on radio programs from coast to coast. Huston has also been a Breitbart News contributor since 2009. Warner works out of the Chicago area, a place he calls a "target rich environment" for political news.


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