WASHINGTON – Americans increased their borrowing in June at the slowest annual pace in three months as the level of credit card debt fell slightly.
The Federal Reserve said Tuesday that consumer debt rose a seasonally adjusted $10.2 billion in June from the prior month to a total of $3.91 trillion. Consumer borrowing increased at an annual rate of 3.1 percent in June, the slowest annual gain since March.
The category that includes credit cards slipped by $185 million in June after having surged by nearly $9.6 billion in May.
Consumer borrowing trends are closely monitored for clues they can provide about the willingness of consumers to borrow more to support their spending. Consumer spending accounts for 70 percent of U.S. economic activity.
During the April-July quarter, U.S. economic growth accelerated to an annual pace of 4.1 percent. The gain nearly doubled the annual growth rate of 2.2 percent during the first three months of 2018.
The Fed’s monthly borrowing report does not include mortgages or any other debt secured by real estate, such as home equity lines of credit.