US consumer debt soared to new heights in the run-up to the holiday season

US consumers increased their spending during the holiday season, leading to near-record-breaking debt levels, according to the Federal Reserve. Consumer borrowing rose by $23.75 billion in November, exceeding economists’ expectations and pushing outstanding credit balances above $5 trillion for the first time. The increase was mainly driven by higher rates of revolving credit, which includes credit cards. However, the surge in credit balances is causing concern, with delinquencies at their highest since 2012. While consumers’ expectations for inflation have decreased, there are indications that spending growth might slow down.