Consumer borrowing up in January with credit card rebound

WASHINGTON (AP) — 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 percent of economic activity.