Washington, DC, November 8--Shoppers dug out the plastic in September, as a hefty jump in credit and charge card use pushed consumer debt up a larger-than-expected $9.8 billion, a Federal Reserve report on Friday showed.
The September gain in consumer non-mortgage debt outstanding was above Wall Street analysts' projections of a $6.5 billion gain and may reflect growing confidence in the economy by households.
Earlier Friday, the Labor Department released a report showing strong job growth in October and September. The report said 337,000 new nonfarm jobs were created in October after an upwardly revised gain of 139,000 in September.
In the Fed report, August credit outstanding was revised upward, to a $2.2 billion gain after an initially reported $2.4 billion decrease.
For September, revolving credit -- which tracks credit and charge card activity -- was up $6.2 billion, its biggest gain since January, after a revised dip of $2.1 billlion the month before.
Non-revolving credit -- which tracks closed-end loans for autos, tuition, boats and other expenses -- also rose by $3.6 billion, after August's $4.3 billion advance.
Credit may be getting more expensive soon, however. On Wednesday, the Federal Reserve meets to mull interest rate policy. It is widely expected to increase its key federal funds rate for the fourth time this year as a move to forestall possible inflationary pressures in the economy.
