Consumers Reduce Borrowing in May
Consumers, showing some caution about piling up new debt, cut their borrowing in May for the first time in 18 months, the Federal Reserve reported.
They reduced their borrowing by $3 billion in May from the previous month, down 1.7% on an annualized basis. It was the first decline since November 2003.
The decline in new debt reflected a pullback in demand for nonrevolving credit, which includes loans for cars, vacation and education. That type of borrowing fell by $3.7 billion in May from the previous month, or at a 3.4% annual rate.
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