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U.S. consumer borrowing increases in July

Staff writer |
U.S. consumer credit increased at an annual rate of 9.7 percent in July, slower than a revised gain of 7.1 percent in the previous month, data released by the Federal Reserve showed.

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Revolving debt, which includes credit cards, rose 7.4 percent to 845.2 billion U.S. dollars in July, while the borrowing in the non-revolving category that includes auto and student loans went up at an annual rate of 10.6 percent to 2.3472 trillion dollars.

The total consumer borrowing rose to 3.19 trillion dollars in July from 3.17 trillion dollars 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 the American 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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