Consumer Borrowing Slows on All Fronts in August
10/9/2017 1:00:00 PM
As the summer ended, the rate of borrowing on credit cards, and for auto and student loans slowed.
Consumer borrowing increased at a slower pace in August across the board for auto loans, student loans and credit card purchases.
According to the Federal Reserve’s latest consumer credit report, total borrowing increased by $13.1 billion in August compared to a revised increase of $17.7 billion in July.
Total consumer borrowing in August increased at an annual rate of 4.2 percent, compared to a rate of approximately 7 percent for the past three years, ABC News reports.
Nonrevolving credit, including auto loans and student loans, in August increased by $7.3 billion and revolving credit, including credit cards, increased $5.8 billion.
Total consumer credit in August reached $3.7 trillion, according to the Fed’s report.
ABC News also reports the Fed’s data provides insight for economists on consumer spending, which represents about 70 percent of economic activity in the U.S. “Consumer spending barely edged up in August in a sign that some Americans remain cautious despite a relatively solid job market,” according to the article.
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