US consumer debt rises despite less use of credit cards
US consumer credit rose more than expected in September, but credit card usage fell for a fourth straight month, which could help shed some light on the slowdown in consumer spending growth during the third quarter.
Total consumer credit increased US$13.74 billion to US$3.05 trillion, the Federal Reserve said on Thursday. Revolving credit, which mostly measures credit card use, dropped US$2.06 billion, falling for a fourth consecutive month.
Consumer spending, which accounts for more than two-thirds of US economic activity, grew at its slowest pace in two years during the July-September quarter, a government report showed on Thursday.
Non-revolving credit, which includes car loans as well as student loans made by the government, increased US$15.8 billion in September, the Fed data showed. That followed a US$15.04 billion increase in August.