US consumer credit goes up

Washington, Aug 8 (IANS) US consumer credit increased at an annual rate of 5.9 percent in June, a slower gain than 7.5 percent in the previous month, the US Federal Reserve said.

Total consumer borrowing rose from a revised $2.83 trillion in May to a seasonally adjusted $2.85 trillion in June, reported Xinhua.

Revolving debt, which includes credit card spending, decreased to $853.6 billion in June, down 3.8 percent from the May figure.

The borrowing in the non-revolving category that includes auto and student loans, rose at an annual rate of 10.0 percent to $1.99 trillion.

Consumer spending, which accounts for about 70 percent of the overall US economic activity, is the major engine of the country's economic growth. A rise in consumer credit means that consumers increased their borrowing.


Get stories like this on the Yahoo app and discover more every day.
Download it now.