News

Actions

Consumer Borrowing Up $13.5 Billion In August

money
Posted at 3:21 PM, Oct 07, 2014
and last updated 2014-10-07 15:21:00-04

WASHINGTON (AP) - U.S. consumers increased their borrowing in August in the category that covers auto loans and student loans but cut back on their credit card borrowing.

The Federal Reserve says that overall borrowing rose $13.5 billion in August following a revised $21.6 billion increase in July. The gains have pushed total consumer debt to a record level of $3.25 trillion.

The category that includes auto loans and student loans increased $13.7 billion in August while the category that covers credit card debt declined by $208 million, the first drop in this area in six months.

Rising levels of consumer borrowing are viewed as a good sign that with strong employment growth, consumers are more confident about taking on debt to finance purchases. Consumer spending accounts for 70 percent of economic activity.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

10/7/2014 3:02:39 PM (GMT -4:00)