Consumer Borrowing Rises Again in April

Borrowing by U.S. consumers increased in April, led by auto loans and credit card debt, Federal Reserve figures showed. Borrowing through credit cards, auto loans and other personal loans rose by $3.7 billion to $1.34 trillion, after rising a revised $5.1 billion in March. Analysts had expected an increase of $5 billion for April. Previously, the Fed estimated that March borrowing had increased $1.6 billion. Economists watch the Fed’s report to help gauge consumer demand. However, the Fed’s report is somewhat incomplete because more people are borrowing against their homes through lower-interest home equity loans, and the Fed’s statistics don’t track loans secured by real estate. Revolving loans, which include credit cards, increased $3.2 billion in April--the largest increase since January--after falling $400 million in March. Auto loans rose $2.2 billion, after increasing $5.4 billion in March. Other types of installment loans decreased $1.7 billion, after rising $100 million the month before.