US Consumer Credit Rises Despite Decline In Card Use
U.S. consumer borrowing rose by $8.95 billion in April, more than expected, as closed-end consumer loan growth overshadowed the smallest rise in credit card borrowing in nearly three years.
Overall April consumer credit rose at a 4.20 percent annual rate, to a total of $2.565 trillion, the Federal Reserve said on Friday.
Economists polled by Reuters were expecting a $7.0 billion increase in April consumer borrowing.
The Fed report showed revolving credit, comprising credit and charge cards, rose just $300.4 million in April, marking the smallest increase since a fall of $1.19 billion in May 2005.
Revolving credit rose at a 0.38 percent annual rate to $956.86 billion after a revised March gain of $5.83 billion or 7.36 percent.
Non-revolving credit, which includes closed-end loans for big-ticket items such as cars, boats, college educations and holidays, rose $8.65 billion, or 6.49 percent, to $1.608 trillion.
This compares to a revised March increase of $7.29 billion or 5.49 percent.