Washington, DC, Jun. 8--Consumers slowed the growth of their borrowing in April, taking on even less new debt than analysts expected.
The Federal Reserve reported yesterday that consumer-credit outstanding rose $3.9 billion in April to a robust $2.031 trillion, less than the expected $5.9 billion increase. That is a much slower pace than the revised $9.3 billion rise in March to $2.027 trillion, which originally was reported to be up $5.7 billion.
In annual terms, consumer credit rose at a 2.3% rate in April, down from a revised 5.5% annual growth rate in March.
Consumer-credit data tends to be highly volatile from month to month and is frequently revised. But analysts suggest that borrowing could slow further in the months ahead if the Fed begins to raise its key short-term interest-rate target, as is expected. The so-called federal-funds rate is now at a 46-year low of 1%.
In April, revolving credit, such as credit cards, fell $3.2 billion after rising by a revised $3.8 billion in March, first reported rising $2.6 billion.
Nonrevolving credit, which includes loans for automobiles, motor homes, education, and vacations, rose by $7.1 billion in April, its biggest increase since January, after rising by a revised $5.5 billion in March.
