US consumer borrowing up $17.5 billion in April
WASHINGTON (AP) — Consumer borrowing accelerated in April to the fastest pace in five months as a rebound in credit card usage offset slower demand for auto and student loans.
The Federal Reserve says borrowing increased by $17.5 billion. That is up from March’s $11 billion advance and marks the biggest jump since a $21.7 billion increase last November.
Borrowing on credit cards increased by $7 billion after having fallen by $2 billion in March. Borrowing for auto and student loans slowed to an increase of $10.5 billion, down from $13 billion in March. It is the smallest advance since last June.
Consumer credit is a key indicator of the willingness of households to increase borrowing to support consumer spending, which accounts for 70% of economic activity.