WASHINGTON (AP)—U.S. consumers stepped up their borrowing in July, led by rising auto loans and higher credit card balances.
The Federal Reserve said Monday that overall consumer borrowing jumped $26 billion in July to $3.24 trillion. The 9.7 percent increase matches April’s gain as the largest in three years.
The figures add to a mixed picture for consumers in recent weeks. A healthy increase in credit usually indicates that consumers are shedding some caution about spending, which would boost economic growth. Rising debt loads are generally a sign of greater confidence in the economy.
But other data hasn’t been as positive. Overall spending fell in July for the first time since January, the government said last month. And consumer confidence, as measured by the University of Michigan, has barely budged in the past year.
Auto and student loans jumped 10.6 percent to $2.36 trillion, fueled by strong auto sales. Automakers in July reported their best sales figures for that month in eight years. Credit card debt, meanwhile, rose 7.4 percent to $880.5 billion.
About Post Author
