Consumer Credit Debt Rises at Faster Pace During April

Borrowing by U.S. consumers grew at a faster pace in April than it did a month earlier as credit card use increased and auto loans increased at a slower pace.

Borrowing rose $5.5 billion in April to $1.25 trillion after rising a revised $2 billion during March. Previously, the Federal Reserve Board said March borrowing increased $1 billion. Before Friday’s report, analysts had expected an increase of $4 billion for April.

Consumer credit has moderated considerably from levels evidenced from late 1993 through most of 1996.

“Double-digit consumer credit growth from late 1993 until mid-1996 has given way to moderate growth,” according to a forecast by economists Mickey Levy and Peter Kretzmer at NationsBanc Montgomery Securities in New York. Credit card borrowing rose $2.3 billion in April after increasing a revised $500 million in March, previously reported as a $600-million rise. Auto loans rose $1.2 billion after rising an unrevised $2.9 billion in March. Other types of personal loans rose $2 billion in April after dropping a revised $1.5 billion in March, initially reported as a $2.4-billion decline.