Consumer borrowing up in January with credit card rebound

WASHINGTON – Consumer borrowing rose at a slightly faster pace in January as borrowing on credit cards rebounded after a slowdown in December.

The Federal Reserve says borrowing increased by $17.05 billion in January after a $15.36 billion December gain. The increase reflected acceleration in borrowing in the category that includes credit cards, up $2.57 billion, after a modest $939 million December gain. Borrowing for auto loans and student loans remained strong, rising by $14.47 billion in January after a $14.42 billion December increase.

The increases pushed overall consumer borrowing to a new record of $4.03 trillion, compared to $3.84 trillion in January 2018. Consumer borrowing is followed closely for signs it provides of consumers’ willingness to borrow to support spending. Consumer spending accounts for 70 per cent of economic activity.