US consumer credit goes up

Last Updated: Sat, Dec 08, 2012 06:50 hrs

Washington, Dec 8 (IANS) US consumer credit increased at an annual rate of 6.2 percent in October, the US Federal Reserve reported.

Total consumer borrowing rose from a revised $2.73 trillion in September to a record $2.75 trillion in October, the central bank said in a report Friday.

Revolving debt, the type which includes credit cards, rose to $857.6 billion in October, up 4.7 percent at an annual rate from the revised $854.2 billion in September, reported Xinhua.

In October, the borrowing in the non-revolving category that includes auto and student loans, rose at an annual rate of 6.9 percent to $1.89 trillion.

Consumer spending, which accounts for about 70 percent of the overall US economic activity, is the major engine of US economic growth. A rise in consumer credit indicated consumers increased their borrowing to make purchases.

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