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Archive for Saturday, August 6, 2005

Consumers boost borrowing in June

August 6, 2005

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Consumers boosted borrowing in June by the largest amount in eight months, the Federal Reserve reported Friday.

They added to their debt loads by $14.5 billion in June from the previous month, a jump of 8.2 percent on an annualized basis. That pushed total consumer credit outstanding to $2.1 trillion.

The June increase - the biggest since October - came after consumers cut back on their borrowing in May at a rate of 0.7 percent, or by $1.2 billion.

A sharp rise in demand for revolving credit, primarily credit cards, led the way in June's borrowing. Such credit shot up at a 1.5 percent pace, or by $7.6 billion, which also was the biggest increase since October.

Use of nonrevolving credit, which includes loans for cars, vacation and education, also rose in June. That type of borrowing increased by $6.9 billion, or at a 6.2 percent pace.

The Fed's report does not include debt from home mortgages or home-equity loans.

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