Consumer Debt Growth Slows

Americans took out $3.74 billion more in consumer credit than they paid off in August, the smallest increase since March, the government said Tuesday.

The Federal Reserve Board said the August increase, which followed a $5.56-billion July advance, represented an annual growth rate of 7.8%. That was down considerably from the 12.2% growth in credit during the first half of the year.

The big decline in August came in the category that includes credit card debt, which grew by $190 million in August, a sharp drop from the $857-million increase recorded in July.

Auto credit, which has been strong in recent months because of the cut-rate financing incentives, grew by $2.51 billion, the biggest advance of any category. Auto loans had climbed by $3.63 billion in July.

The category that includes cash loans from banks and other short- and medium-term debt rose by $1.21 billion in August, up slightly from a $1.16-billion gain in July.

The overall increase was the lowest since a $3.09-billion gain in March.