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Monday
Feb072011

More Consumer Borrowing: A Sign of Renewed Consumer Confidence

Photo Courtesy - Getty Images(WASHINGTON) -- The Federal Reserve said Monday that overall consumer borrowing was up three percent in December -- a third straight monthly gain.  After two years of cutting back, that is a sign of consumer confidence in the economy.

"People really are earning more money and you're starting to see that in those consumer-spending markets," economic forecasting expert Christopher Thornberg of Beacon Economics told ABC News.  "At least, in the short run, that's going to be a powerful boost to the economy and something, frankly, the administration wants to see."

Thornberg also says consumers are putting more purchases on credit as consumer confidence improves.

"In as much as people are borrowing money and buying cars, you can assume they're using their credit cards as well along the way.  So, it really does look like thinks are starting to improve on the consumer-credit front," he said.

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