New Federal Reserve data shows that consumer credit balances expanded by $US18.756 billion in December.
This was much more than the $US12.0 billion expansion expected by economists.
Revolving credit balances, which include things like credit cards, increased by $US5 billion. This was the biggest gain in seven months.
Non-revolving balances, which include things like auto and student loans, grew by $US13.8 billion.
The financial crisis was followed by sharp contraction in credit balances. This so-called balance sheet recession put tremendous pressure on the economy.
According to Bloomberg, this was the biggest gain in consumer credit balances since February 2013.
All of this confirms that the balance sheet recession is over.