The Consumer loans in the United States in January unexpectedly increased by $ 5 billion or an annual rate of 2.4 percent. With the largest contribution to growth is the increase in loans to buy cars. The data of the Federal Reserve (U.S. central bank) for December were revised down. In the last month of last year loans fell 4.6 billion dollars instead of the original estimate of a decline of 1,7 billion. After initial assessment in December, economists predicted a decline in January amounted to 4,5 billion dollars. This is the first increase in loans last year and shows that consumer confidence in the U.S. economy growing. “This is a sign that the economy is on the bottom and consumers begin to spend again,” said Chris Rapkey, an economist at Bank of Tokyo-Mitsubishi. “The increase in loans kicks prospects for the economy this year.” Consumer spending represents 70% of GDP.
(more…)