U.S. consumer borrowing rose for a
sixth straight month in May, as personal incomes increased and
shoppers bought new cars at the fastest pace since December, a
Federal Reserve report showed.
Non-mortgage debt rose $8.2 billion, or 4.9 percent at an
annual rate, during the month, the Fed reported in Washington.
Borrowing rose a revised $5.3 billion, or 3.1 percent, in April.
Consumer spending rose 1 percent in May, the largest gain
since October 2001, the Commerce Department reported last month.
“The trend in borrowing has remained stronger than
expected,” said Christopher Low, chief economist at FTN Financial
in New York. Borrowing from banks and credit cards rose in part
because consumers knew home equity loan rates would rise, he said.
Bloomberg News
