WASHINGTON —Consumers slowed their borrowing in August to an annual increase of 4.2 percent – down from a pace of roughly 7 percent over each of the past three years.
The Federal Reserve said Friday that overall consumer credit rose $13.1 billion in August, down from the $17.7 billion increase in July.
Economists and financial markets monitor the consumer borrowing report for insights about consumer spending, a category that represents about 70 percent of U.S. economic activity. Consumer spending barely edged up in August in a sign that some Americans remain cautious despite a solid job market.
Others signs suggest that consumers are being careful with the additional debt they’re taking on. A measure of delinquencies tracked by the American Bankers Association remained below its historic 15-year average, the trade association said Thursday.
Non-revolving credit, which includes auto and student loans, increased $7.3 billion. The revolving credit category, which includes credit cards, increased $5.8 billion.
The August increase brought consumer credit to a total of $3.77 trillion. The Fed’s monthly report does not include mortgages or other debt secured by real estate.