Consumer debt takes a dip

Northwestern Financial Review, Feb 1-Feb 14, 2003

Consumer borrowing fell in November, its first drop in more than four years, raising fears that consumer spending may be faltering. Consumer debt fell by $2.2 billion in November after rising $1.6 billion in October. It was the first time since January 1998 that credit had declined and the biggest drop since October 1991.

Some analysts had expected credit to increase by $3.9 billion during November. Unemployment hit an eight-year high that month, which shook consumer confidence, prompting households to use restraint in spending and take on less debt.