U.S. consumer borrowing tops $4 trillion in October as credit card usage spikes

U.S. consumers made spending great again in October as borrowing surged, says a new report by the central bank.

According to the Federal Reserve, total consumer borrowing soared in October to a seasonally adjusted $18.9 billion, up from a September jump of $9.6 billion.

This represented the largest spike in borrowing in three months. So, what drove the consumer borrowing? Credit cards.

Credit card spending went up $7.9 billion, up from the tepid $187 million gain in the previous month and a drop in August.

Auto and student loans, combined topped $11 billion, up from $9.4 billion in September.

In total, consumer borrowing has reached $4.17 trillion.

Investors and analysts pay a lot of attention to these types of reports because they serve as gauges for an economy that relies primarily on consumer spending.