Con­sumer credit rises at slower pace

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — The As­so­ci­ated Press

WASH­ING­TON — Amer­i­can con­sumers in­creased their bor­row­ing at a slower pace in June, as the cat­e­gory that in­cludes auto and stu­dent loans posted the small­est gain in a year. The Fed­eral Re­serve said Mon­day that over­all con­sumer credit ex­panded by $12.4 bil­lion in June, down from May’s $18.3 bil­lion in­crease and less than econ­o­mists had been ex­pect­ing. The credit re­port is closely watched for clues about the di­rec­tion of con­sumer spend­ing, which ac­counts for about 70 per­cent of eco­nomic ac­tiv­ity. Non-re­volv­ing credit, which in­cludes auto and stu­dent loans, rose $8.3 bil­lion, down from an $11.4 bil­lion jump in May and the small­est amount since a $7 bil­lion in­crease in June 2016. The cat­e­gory that in­cludes credit cards climbed $4.1 bil­lion, down from May’s $6.9 bil­lion gain. The June in­crease brought con­sumer credit to a fresh record of $3.86 tril­lion. The Fed’s monthly credit re­port does not in­clude mort­gages or other debt se­cured by real es­tate, in­clud­ing home-eq­uity loans.

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