The amount of consumer credit outstanding rose sharply in November and December by annualized rates of 9.9 and 9.3 percent, respectively. Consumer credit has two main components: nonrevolving credit, which includes loans for automobiles, mobile homes, education and a few other categories, and revolving credit, primarily credit card loans. Since hitting bottom in May 2010, nonrevolving credit, which accounts for more than two-thirds of the total, has expanded every month except August 2011 when the debt ceiling debate reached a climax in Congress and confidence sagged. Revolving loan balances hit a low in April 2011 and have risen fitfully since then. Mortgage debt on one-to-four-family residences, which is not counted as consumer credit (and is not included in the chart) continues to decline, falling $59 billion in the third quarter of 2011 to $10.3 trillion. Thus, while consumers continue to shed mortgage debt, they are adding debt at a rapid pace to pay for vehicles and educations and at a modest pace on their credit cards. Growth in revolving credit helped lift consumer spending late last year, while the ongoing decline in outstanding mortgages is supporting robust levels of apartment leasing.One of the many bright spots in last Friday’s employment report from the Bureau of Labor Statistics was the manufacturing sector, which added 50,000 net new payroll jobs in January. This was the largest one-month gain since the 52,000 jobs created in January 2011 and the second largest gain since August 1999. The average workweek for manufacturing employees rose to 40.9 hours, the highest level since the BLS began tracking this metric in 2006 (see chart). In addition, the average length of overtime for manufacturing employees increased to 3.4 hours, the highest level since January 2008. The strength of the manufacturing sector can be traced to growing exports, continued spending by businesses on capital goods, and sustained, moderate consumer spending. The strong manufacturing sector will boost demand for all types of industrial space in 2012, supporting Grubb & Ellis’ outlook for a five percent gain in the asking rental rate for warehouse/distribution space.