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Consumer Spending Rises Despite Credit Card Debt Growth Slowing

Consumer Spending Rises Despite Credit Card Debt Growth Slowing

Credit card debt grew slowly in December, rising by 0.1% compared to a 1.5% increase in November.
‌Why it matters: Credit card debt is not necessary to fuel consumer spending. Accounting for inflation, consumer spending increased by 0.5% in December, while wages grew by 0.4%.
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By the numbers: Credit card debt has risen since April 2021.

However, credit card debt is not a systemic risk. As a percentage of income, it is still below historical norms.
The 20-year average is 7.4%, but it is at 6.4% now.

Big picture: If our leaders support business and free enterprise Americans’ income will continue growing and they will continue to spend.
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