Archive for Saturday, August 6, 2005

Consumers boost borrowing in June

August 6, 2005


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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