PYMNTS Intelligence has documented that the Labor Economy remains central to U.S. growth, acting as a contributor to GDP, job creation and retail demand. The Labor economy represents 36% of the workforce and 15% of spending.
And while inflation and tariffs continue to test budgets, consumers are proving that adaptability defines their response to higher prices.
Credit growth Steadies
Federal Reserve G.19 data released Friday shows that in September, consumer credit increased at an annualized rate of 3.1%, rebounding from a modest 0.7% rise in August. For the third quarter, credit expanded 2.7%, matching the pace seen in the second quarter. Revolving credit, which includes credit cards, rose 1.5% after declining 5.6% in August, while nonrevolving credit such as auto and student loans climbed 3.7% – the strongest gain of the year.
The slower, steady pace of credit growth suggests not a retreat but a recalibration. Consumers continue to borrow, but perhaps more deliberately, balancing credit management with the need to sustain household spending power.
Credit Behavior Reflects Discipline
PYMNTS Intelligence data from the Labor Economy series show that the average consumer carries $4,880 in credit card balances, compared to $3,861 for Labor Economy workers. But despite lower balances, Labor Economy consumers are more likely to revolve their debt: 35.7% said they always or usually carry a balance,versus 31.2% overall.
Just 46% of Labor Economy consumers said they rarely or never revolve credit, compared to 52.1% of consumers in general,while 17.5% occasionally revolve.That pattern indicates at least some flexibility rather than strain as households