US Consumers Put Brakes on Borrowing

10 October 2006

WASHINGTON DC: The US Federal Reserve has reported that consumer borrowing rose at an annual rate of 2.6% in August, compared to a 4.3% rate of increase in July - the slowest performance since borrowing fell in March.

Borrowing for auto loans rose at an annual rate of 1.6% in August, far below the 4.1% gain in auto and other non-revolving loans the previous month.

Economists, however, believe recent falls in gasoline and other energy costs should help support consumer spending in the months ahead and prevent the country from falling into a full-blown recession.

Data sourced from USA; additional content by WARC staff