Consumers cut back on use of credit
U.S. consumers cut back on their borrowing in October as the economy sank sunk deeper into recession.
The Federal Reserve reported that consumer credit fell at an annual rate of 1.6% in October. That was compared with a 3.1% growth rate logged in September and marked the deepest cutback since August.
Economists expected consumers to boost their borrowing by $2 billion in October from the previous month. Instead, consumer debt dropped by $3.5 billion to $2.58 trillion.