WASHINGTON U.S. consumer borrowing rose in June after three months of declines but the key category of credit card debt extended its decline.
The Federal Reserve reported Friday that overall consumer borrowing rose by 2.6%, or $8.95 billion, in June after big declines in March, April and May as many parts of the country went into lockdown to combat the coronavirus.
In June, the category of borrowing that covers credit cards fell for a fourth month, dropping by $2.3 billion, or 2.8%. That was offset by an increase in the category that covers auto loans and student loans, which increased by $11.3 billion, or 4.3%.
Consumer borrowing is closely watched for signals it can send about consumers’ willingness to keep borrowing to support their spending, which accounts for 70% of U.S. economic activity.
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