October 8, 2019
The Federal Reserve reported on Monday consumer borrowing rose $17.9 billion in August, following a $23-billion increase the previous month. In August, consumer credit increased at a seasonally adjusted annual rate of 5.25%. Revolving credit decreased at an annual rate of 2.25%, and nonrevoving credit increased at an annual rate of 7.75%.
The latest credit numbers reflected a boost in auto and student loans. Those two categories rose $19.8 billion in August, which was the biggest increase in three years. That gain offset a $1.9 billion drop in the credit card category.
Though the economy is facing some strong headwinds, strong consumer spending has remained a solid underpinning for the economy. That trend is expected to continue through the year, mainly because economists believe the historical low unemployment will boost income growth.
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