U.S. Consumer Credit Surges Past Forecasts

(MENAFN) American household borrowing exploded past analyst predictions in December 2025, with consumer credit climbing $24 billion from the previous month, the Fed revealed Friday.

The data showed total consumer credit hit $5.11 trillion in December, nearly tripling the $9 billion expansion economists had anticipated.

Credit card balances and other revolving credit instruments drove much of the surge, jumping $13.9 billion during the period. Meanwhile, non-revolving credit—including home mortgages, automobile financing, and student loans—added $10.2 billion.

On an annualized basis, December's consumer credit growth reached 5.7%. Revolving credit accelerated at a striking 12.6% annual pace, while non-revolving credit expanded at a more modest 3.2% rate.

The unexpected spike in borrowing signals continued consumer spending appetite despite elevated interest rates and economic uncertainty.

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