Consumer Borrowing Increases 3% in 2005

Consumers, weighed down by high debt loads and low savings rates, increased borrowing last year by the smallest amount in 13 years, the Federal Reserve reported.

The government said borrowing on credit cards, auto loans and other forms of consumer debt rose 3% in 2005, down from rates above 4% in the previous three years and a 7.7% surge in 2001. The latest increase was the smallest since a 1% rise in 1992.

Consumer borrowing climbed in December at an annual rate of 1.9% after a weak 0.3% rate of increase in November and a decrease in October, a decline that reflected a big drop in auto sales.