This Wednesday, Feb. 20, 2019, photo shows logos for credit cards in Zelienople, Pa. On Thursday, March 7, the Federal Reserve releases its January report on consumer borrowing. (AP Photo/Keith Srakocic)

Consumer borrowing up in January with credit card rebound

By The Associated Press March 7, 2019 at 1:08pm

WASHINGTON (AP) — Consumer borrowing rose at a slightly faster pace in January as borrowing on credit cards rebounded after a slowdown in December.

Borrowing increased by $17.05 billion in January after a $15.36 billion December gain, the Federal Reserve reported Thursday. 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.

The government reported last week that the overall economy, as measured by the gross domestic product, grew at an annual rate of 2.6 percent in the October-December quarter. That was a slowdown from growth rates of 4.2 percent in the third quarter and 3.4 percent in the third quarter of last year. The deceleration reflected weaker consumer spending, which grew at a still-solid 2.8 percent in the fourth quarter, down from a 3.5 percent increase in the third quarter.

For the year, the GDP grew by a solid 2.9 percent, helped by the 2017 tax cut legislation and by a boost of billions of dollars in spending on the military and domestic programs. Many analysts believe the economy will slow this year to growth just above 2 percent as the support from the tax cuts and government spending increases starts to wane.

The Federal Reserve’s monthly report on consumer spending does not cover home mortgages or any loans secured by real estate such as home equity loans.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Submit a Correction →

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:

WJ Wire

The Associated Press

SummaryMore Biographical InformationRecent PostsContact

The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter

@AP

Facebook

The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.

Location

New York City