Consumer Borrowing Continues To Fall

Washington, DC, Dec. 8, 2009--Consumers borrowed less for a record ninth straight month in October, according to the Federal Reserve.

Consumer credit fell at an annual rate of $3.51 billion in October. Economists expected a $9.3 billion decline.

Demand for revolving credit, the category that includes credit cards, fell 9.3 percent, while borrowing in the category that includes auto loans rose at an annual rate of 2.6 percent.

Americans are borrowing less as they try to replenish depleted investments. Many are finding it hard to get credit as banks, hit by the worst financial crisis since the 1930s, have tightened lending standards.

Some analysts said the smaller-than-expected decline in borrowing could be a sign that consumers are cautiously moving toward increased spending in some areas, which would be a good sign for the economy going forward.