The aftershocks of the financial crisis of 2008 may finally be abating as consumers seem willing to take on more debt and are showing confidence in the U.S economy, according to Bloomberg. Consumers borrowed more in August than they have in the past 12 months, mostly for automobile and school loans as students prepare for the new semester.
Consumer spending increased, and people are encouraged by steady hiring and income growth. For the first time since 2007, U.S. incomes are increasing, if only slightly. Poverty levels are improving, and the wage gap is narrowing. Non-revolving credit rose in August, while revolving credit, which includes credit cards, also rose.
Here is the data:
$25.9 billion | The increase in consumer borrowing in August compared to a $17.8 billion gain in July
$20.2 billion | The increase in non-revolving credit for August
$18.7 billion | The increase in federal government lending to U.S. consumers for August, according to the Federal Reserve
$16.5 billion | The increase in consumer borrowing for August expected by experts
$5.6 billion | The increase in revolving debt