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Friday
Jul082011

Fed's Report Increase in Consumer Credit Spending

Stockbyte/Thinkstock(NEW YORK) -- Consumer borrowing was up in May, marking the second significant climb in credit card debt since the financial crisis first set in.

The Federal Reserve Friday released a report showing consumer credit increased by $5.08 billion -- much higher than the $3 billion rise expected by economists surveyed by Dow Jones Newswires, according to The Wall Street Journal.

Overall, consumers still appear to be paying down credit card debt, accounting for monthly drops since the start of the financial crisis.

Economist Peter Newland of Barclays told WSJ, that credit cards will not likely be the main spending channel for consumers trying to cut back in this still unstable economy.

"This channel of finance is unlikely to be a strong driver of consumer spending for some time to come," he said.

Copyright 2011 ABC News Radio







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