Con­sumers boost bor­row­ing in Oct.

Albuquerque Journal - - BUSINESS -

Amer­i­can con­sumers in­creased their bor­row­ing by $20.5 bil­lion in Oc­to­ber. It was the big­gest gain in 11 months and re­flected strong in­creases in the use of credit cards and in auto and stu­dent loans.

The Oc­to­ber fol­lowed a $19.2 bil­lion gain in Septem­ber and was the best show­ing since No­vem­ber 2016, the Fed­eral Re­serve re­ported Thurs­day.

The cat­e­gory that cov­ers auto loans and stu­dent loans was up $12.2 bil­lion, slightly slower than the $13.2 bil­lion rise in Septem­ber. Bor­row­ing in the cat­e­gory that cov­ers credit cards rose by $8.3 bil­lion, up from a $6 bil­lion in­crease in Septem­ber and the strong­est show­ing since No­vem­ber.

The solid gains were good signs for strength in con­sumer spend­ing head­ing into the hol­i­day shop­ping sea­son. Con­sumer spend­ing ac­counts for 70 per­cent of eco­nomic ac­tiv­ity.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.