Friday, October 31st9.8°C
23888
22916

US consumer borrowing up $19.6 billion in May; gains slow after sudden April acceleration

WASHINGTON - Consumers increased their borrowing at a slower pace in May compared to the prior month.

Overall credit rose by $19.6 billion in May, down from a gain of $26.1 billion in April, the Federal Reserve said Tuesday. The relatively modest increase should help to feed slow but steady economic growth, because consumers rely on debt to pay tuition, buy cars and shop.

Total outstanding consumer debt is now approaching $3.2 trillion.

Auto and student loans drove much of the gains in May. They increased by a combined $17.8 billion. That marks a year-over-year rise of 9.3 per cent.

Credit card debt rose by a slight $1.8 billion in May, after having surged in April. The increase in credit card debt over the past year has been 2.5 per cent.

Increased borrowing usually suggests that people are more confident about their prospects and willing to take on debt. That, in turn, can help drive consumer spending, which accounts for 70 per cent of U.S. economic activity.

Credit card debt plummeted during the recession. An average household had $8,740 in credit card debt when the downturn started at the end of 2007, according to an analysis of Fed figures by the financial data firm NerdWallet.

That figure steadily dropped through the middle of 2011, but recently plateaued around $7,100 because people are still hesitant to take on additional high-interest debt.

Student loan debt has been the biggest driver of consumer borrowing since the recession ended in June 2009, according to data from the Federal Reserve Bank of New York.

The Canadian Press


Read more Business News

22970


Recent Trending




Today's Market
S&P TSX14576.74+118.05
S&P CDNX764.91-6.74
DJIA17337.73142.31
Nasdaq4618.248+52.11
S&P 5002011.29+16.64
CDN Dollar0.8872-0.0062
Gold1169.30-29.2999
Oil80.37-0.53
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.12+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.19+0.04
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.64+0.42
Copper Mountain Mining2.035+0.065
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.3750.00

 





FEATURED Property
20892441900 Diamond View Drive
5 bedrooms 6 baths
$2,998,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


23741