U.S. consumer credit eases in October, likely to move higher on recent run-up in interest rates

Consumer credit in the United States eased during the month of October, as a result of a shift away from mortgage debt and toward others forms of credit, particularly student loans, which have exhibited steady, uninterrupted growth in recent years.

Consumer credit increased by USD16.0 billion in October, a slowdown from the pace of the previous few months, data released by the Federal Reserve showed Wednesday. Consumer credit is near record highs when viewed as a share of disposable personal income.

Revolving credit is up 6 percent over the past year and has cooled a bit after reaching a cycle high in August. Non-revolving credit was also up about 6 percent over the past year as a result of additional gains in auto and student lending.

The Fed’s consumer credit report includes a quarterly reading on interest rates for new car loans of varying term length. Auto loan rates have largely plateaued over the past few quarters, data showed.

"The recent run-up in interest rates, if sustained as we suspect, could begin to drive this a bit higher," Wells Fargo Securities commented in its latest research report.

Meanwhile, the dollar index traded at 100.01, down 0.22 percent, at the time of closing on the NYSE, while at 5:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -44.00 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex