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US consumer credit goes up

Posted on Dec 08, 12:31PM | IANS

US consumer credit increased at an annual rate of 6.2 percent in October, the US Federal Reserve reported.

Total consumer borrowing rose from a revised USD 2.73 trillion in September to a record USD 2.75 trillion in October, the central bank said in a report Friday.

Revolving debt, the type which includes credit cards, rose to USD 857.6 billion in October, up 4.7 percent at an annual rate from the revised USD 854.2 billion in September, reported Xinhua.

In October, the borrowing in the non-revolving category that includes auto and student loans, rose at an annual rate of 6.9 percent to USD 1.89 trillion.

Consumer spending, which accounts for about 70 percent of the overall US economic activity, is the major engine of US economic growth. A rise in consumer credit indicated consumers increased their borrowing to make purchases.