Consumer borrowing rises in September

WASHINGTON — Americans increased their borrowing by a solid amount in September, the Federal Reserve reported Wednesday. But the gain paled in comparison to a big August surge.

Consumer borrowing rose by a seasonally adjusted $10.9 billion in September after a jump of $22.9 billion in August, the Fed reported. The August gain had been the strongest increase in nine months.

The September advance was below economists’ expectations for a $16.5 billion gain. The category that covers auto loans and student loans rose $11.2 billion. The category for credit cards fell by $311.6 million after having risen $4.6 billion in August.

Borrowing is closely tracked for signs of consumers’ willingness to take on more debt to finance their purchases.

Consumer spending accounts for 70 percent of economic activity and has been especially important in driving growth in recent months. The economy, as measured by the gross domestic product, grew at an annual rate of 3.5 percent in the July-September quarter, helped by the biggest burst in consumer spending in nearly four years. That GDP gain followed an even faster 4.2 percent growth rate in the second quarter of this year.

With unemployment down to 3.7 percent, the lowest level in nearly five decades, and consumer confidence high, analysts believe consumer spending will continue to provide a strong underpinning for growth.