CONSUMERS INCREASE BORROWING

U.S. consumers borrowed more on their credit cards in May and also took out more student and auto loans, a modest sign of economic health.

The Federal Reserve said Monday that consumer borrowing increased 5% that month, just below April’s 5.2% rise. Total outstanding consumer debt, which excludes mortgages, stood at nearly $4.1 trillion in May.

Steady increases in consumer borrowing echo other recent data showing that consumers remain confident in the economy and willing to spend. Retail sales rose for the third straight month in May. Consumer confidence, as measured by the Conference Board, a business research group, is at historically high levels, though it slipped in June.

U.S. government faces potential default in Sept.

Lower than expected tax revenues now mean there is a “significant risk” that the federal government will run out of borrowing authority in the early part of September, according to a new analysis by the Bipartisan Policy Center, a Washington think tank and advocacy group.

The report adds urgency to Washington budget and debt talks that have yet to go anywhere.

The main culprit is that tax revenues are persistently weaker than anticipated, said Shai Akabas, the group’s economic policy director, growing by 2% to 3% instead of the 5% to 6% anticipated earlier. The group, which has had a good track record in prior estimates, said two months ago that policymakers had until at least October before the threat of default.

Fuel makers launch ad criticizing Trump ethanol mandates.

M AD I S ON,

» An association representing WI S. oil refineries launched a television ad in four swing states Monday criticizing President Donald Trump’s moves to expand the use of ethanol in gasoline.

The American Fuel and Petrochemical Manufacturers’ 30-second spot will run statewide through July in Michigan, Pennsylvania, Ohio and Wisconsin. The group didn’t immediately say how much it was spending on the buy.

The ad claims that Trump promised a “winwin energy policy for all Americans. But for small refineries, unchecked ethanol mandates are job killers, hurting the backbone of our manufacturing economy.”

It goes on to say: “President Trump, only you can fix this.”