Americans borrow US$4.15 trillion in SeptemberBusiness | 8 Nov 2019 1:59 pm
Consumer borrowing increased in September at a modest pace, driven by more student and auto loans, though a category that mostly includes credit cards fell for the second straight month.
The Federal Reserve said Thursday that overall consumer borrowing increased by 2.8 percent to US$4.15 trillion. A category that covers student and auto loans grew by 4.2 percent, while credit card debt fell by 1.2 percent.
Americans are spending at a solid pace but in recent months have relied less on borrowing.
Consumer borrowing is closely watched for signs about the strength of consumer spending.
Healthy consumer spending has kept the economy afloat, as Americans’ economic outlook remains optimistic, thanks in part to steady hiring and an ultra-low unemployment rate of 3.6 percent.
The Federal Reserve's monthly credit report does not cover home mortgages or other loans secured by real estate, such as home equity loans.