Consumer credit jumps again in September (by Greg Robb)

WASHINGTON (MarketWatch) - U.S. consumers increased their debt in September by a seasonally adjusted $11.4 billion, the second straight strong gain, the Federal Reserve reported Wednesday. The increase in September was stronger than the roughly $10 billion gain expected by Wall Street economists. The gain in August consumer credit was revised up slightly to $18.3 billion increase from the initial estimate of $18.1 billion. For the third quarter, consumer credit increased at a 4% annual rate. As in the prior month, the increase in September credit came from a jump in non-revolving debt such as auto loans, personal loans and student loans. These loans experienced a $14.3 billion jump in September after a $14.1 billion gain in the prior month. Analysts said that student loans, now captured under the federal government subcomponent, are driving credit higher. Credit-card debt fell by $2.9 billion in the month after a $4.3 billion increase in August.