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U.S. consumer borrowing increase in May

Staff writer |
U.S. consumer credit increased at an annual rate of 7.4 percent in May, slower than a revised gain of 10 percent in April, according to the Federal Reserve.

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Revolving debt, which includes credit cards, rose 2.5 percent to $835 billion in May, while the borrowing in the non- revolving category that includes auto and student loans rose at an annual rate of 9.3 percent to 2.32 trillion dollars.

The total consumer borrowing rose to 3.15 trillion dollars in May from $3.13 trillion in the previous month, the data showed.

Consumer spending, which accounts for about 70 percent of the overall U.S. economic activity, is the major engine of U.S. economic growth. A rise in consumer credit indicates that consumers boost their borrowing.

The Fed's borrowing report tracks credit card debt, auto loans and student loans, but not mortgages or home equity loans.

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