US consumer borrowing rises in August
WASHINGTON — American consumers stepped up their borrowing in August, taking on greater debt in a possible sign of optimism amid stable job growth.
Total consumer borrowing rose $25.9 billion in August to nearly $3.7 trillion outstanding, the Federal Reserve said Friday Consumer debt is rising at an annual pace of 8.5 per cent, the strongest clip since September of last year.
Revolving credit, which covers credit cards, increased $5.6 billion, an annual gain of 7 per cent. The category that includes auto and student loans jumped $20.2 billion, an increase of more than 9 per cent from a year ago.
Consumers account for about 70 per cent of U.S. economic activity. Their spending is among the few strengths that are helping to fuel the broader economy, which expanded at just 1.1 per cent in the first half of 2016.