Archive for Saturday, October 7, 2000

Americans’ credit usage up sharply

October 7, 2000

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— Americans borrowed money more freely in August as they made heavy use of credit cards and financed autos and other items on credit.

The Federal Reserve said Friday consumer credit increased by a seasonally adjusted $13.4 billion in September, or 10.9 percent at an annual rate, the fastest pace since June.

Many analysts had expected borrowing to grow by $10.5 billion in August.

Consumer credit in July grew by $9.1 billion, or at an 7.4 percent rate, according to revised figures. That was less than the $9.4 billion the Fed previously estimated.

In August, demand for revolving credit, such as that used for credit cards, rose by $7.2 billion a breakneck 13.5 percent annual rate up from $3.7 billion and a 7.1 percent rate in July.

The total nonrevolving credit, such as loans for new cars, vacations and other big-ticket items, advanced by $6.2 billion at an annual rate of 8.9 percent. That was up from $5.3 billion and a 7.7 percent rate in July.

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