US consumer credit goes up

US consumer credit increased at an annual rate of 8 percent in August, the US Federal Reserve announced.

Last Updated: Oct 06, 2012, 17:37 PM IST

Washington: US consumer credit increased at an annual rate of 8 percent in August, following an unexpected decline in July, the US Federal Reserve announced.

Total consumer borrowing rose from a revised USD2.70 trillion in July to USD2.72 trillion dollars in August, the central bank said in a report Friday.

Revolving debt, which includes credit cards, rose to USD854.9 billion in August from a revised USD850.7 billion in July, representing an annual growth rate of 5.9 percent, reported Xinhua.

In August, borrowing in the non-revolving category, which includes auto and students loans, rose at an annual rate of 9 percent to USD1.87 trillion.

Consumer spending, which accounts for about 70 percent of the overall US economic activity, was a major engine of the US economic growth.

IANS