Less-Leery Consumers Boost Total Debt to All-Time High
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WASHINGTON — U.S. consumers increased their borrowing for the ninth consecutive month in April, bringing total debt to an all-time high, the government said Monday.
Outstanding consumer installment credit rose at a seasonally adjusted annual rate of 3.6% to $754 billion, the Federal Reserve said.
April’s gain followed a 4.7% rate increase in March and a 7.4% rate increase in February. The last consumer credit decline was in July, the 14th drop in 20 months.
During the recession, consumers reduced their borrowing and sought to pay down debts, but since last summer they have been less leery of taking on added debt.
Economists say consumers could turn cautious again without a better job market. The nation’s unemployment rate in May was 6.9%, down from 7% for February through April and from an eight-year high of 7.7% last June.
In April, the biggest gain in outstanding credit came in the revolving-credit category, which includes credit cards. It rose at a seasonally adjusted annual rate of 7.5%, following an identical increase in March.
Auto borrowing increased at a 1.9% annual rate after a 2.3% increase a month earlier. Other kinds of consumer loans rose at a 1.2% annual rate.
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