US consumer borrowing rises at slowest annual pace in June ’18

Trump predicts US GDP to 5 pct next quarter

WASHINGTON, Aug 8, (Agencies): Americans increased their borrowing in June at the slowest annual pace in three months as the level of credit card debt fell slightly.

The Federal Reserve said Tuesday that consumer debt rose a seasonally adjusted $10.2 billion in June from the prior month to a total of $3.91 trillion. Consumer borrowing increased at an annual rate of 3.1 percent in June, the slowest annual gain since March.

The category that includes credit cards slipped by $185 million in June after having surged by nearly $9.6 billion in May.

Consumer borrowing trends are closely monitored for clues they can provide about the willingness of consumers to borrow more to support their spending. Consumer spending accounts for 70 percent of US economic activity.

During the April-July quarter, US economic growth accelerated to an annual pace of 4.1 percent. The gain nearly doubled the annual growth rate of 2.2 percent during the first three months of 2018.

Also:

WASHINGTON: US manufacturing continued to expand in July but at a slower pace, as many firms cited the impact of a raft of tariffs especially on China, according to an industry survey Wednesday.

New orders and production remained strong but slowed from June, while employment was flat, according to the Institute for Supply Management’s closely-watched survey.

“Respondents are again overwhelmingly concerned about how tariff-related activity, including reciprocal tariffs, will continue to affect their business,” said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.

Although 17 of the 18 industries covered reported continued expansion, he said half the firms surveyed mentioned concerns about US tariffs and retaliatory duties, compared to just a third in prior months, and the issue is causing companies to hold off on investing.

(AP) File photo shows passengers board yellow cabs as others wait in line at a taxi stand on 42nd Street outside Grand Central Terminal in New York. Once synonymous with New York City, yellow taxis have been supplanted by an army of black cars that pick up riders through the Uber, Lyft and other apps. The rise in the number of ride-hail vehicles has been so dizzying that the New York City Council is pondering a series of legislative proposals to be voted on Aug 8.