U.S. Household Debt Rose Last Quarter at Fastest Rate Since 2007

U.S. household debt jumped in the fourth quarter at the fastest pace of this expansion while wealth gains continued amid a rising stock market, underscoring the forces behind recent strength in consumer spending, a Federal Reserve report showed Thursday.

The pace of household debt accumulation during the quarter reflects the Fed’s previously reported outsize 7.8 percent annualized rise in consumer credit, along with a 3 percent gain in mortgage borrowing. Such activity helped fuel a 3.8 percent rise in consumer spending in the period, the fastest in more than a year. Figures released Wednesday showed Americans put away their credit cards in January, as revolving credit outstanding rose by the least since early 2015.