US Consumer Credit change for November contracted by $7.9B, in sharp contrast to the forecast for no change and previous month’s $2.8B drop. Consumer credit change reached a record contraction with sizeable declines in non-revolving credit and an increase in revolving credit. The report is showing a preference for revolving credit, which suggests consumers are paying less on balances to maintain their previous standards of living – a dangerous prospect considering the level of default in the market. This is yet another sign that the economy is heading into a deeper recession.
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