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Reuters Market News
U.S. consumer credit rose $9.5 billion in May

WASHINGTON, July 8 (Reuters) - Consumers accelerated their borrowing in May, with new loans for big ticket items like cars leading the way, the Federal Reserve reported on Monday.

The Fed said total consumer credit oustanding rose by $9.5 billion in May to a seasonally adjusted $1.706 trillion. That followed a revised $8.6 billion increase in borrowing in April, down slightly from the previously reported rise of $8.8 billion.

The May increase in borrowing, the biggest since November, was led by a rise in nonrevolving credit, reflecting closed-end loans for cars, boats, education expenses and vacations. Those types of loans rose by $7.1 billion after a $4.2 billion rise in April.

The growth of revolving credit, which includes credit and charge cards, slowed in May to a gain of $2.4 billion from a $4.4 billion increase in April.

The gain in overall consumer credit growth in May exceeded the expectations of Wall Street economists surveyed by Reuters, who had projected a $5.6 billion increase.

http://biz.yahoo.com/rf/020708/economy_credit_1.html