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Auto financing rose in October

Posted on Tuesday, December 8, 2015 at 9:32:09 AM

Americans sought auto financing and student loans in a big way in October. According to the Federal Reserve on Monday, consumer borrowing increased $16 billion in October to $3.5 trillion as people took on debt with the aim of helping their commutes and employment searches. The borrowing pace, however, fell off from September, which saw a $28.5 billion jump.

Almost all of the borrowing gains made in October are due to auto and student loans. The New York Times reported that the emphasis on these kinds of borrowing suggest good things, since Americans are upgrading both their vehicles and educational outlooks rather than go into debt for everyday needs like food and gas. 

Economists predict that steady job growth over the last few months will keep consumer spending healthy as Americans continue to purchase new cars and homes. The Bureau of Labor Statistics reported on Dec. 4 that the economy added 211,000 jobs in November. Unemployment remained unchanged at 5 percent, but the BLS findings showed that many workers who had withdrawn their name from the market were beginning to reenter the labor force.