Consumer borrowing plummets in October

WASHINGTON — Consumer borrowing fell in October by the largest amount in 14 years, reflecting a big drop in auto loans.

The Federal Reserve reported Thursday that borrowing declined at an annual rate of 0.6 percent in October following a revised 2 percent increase in September. It was the biggest drop since a 1 percent plunge in October 1992.

The weakness last month came from a huge falloff in demand for auto loans and other types of non-revolving credit, which declined at a rate of 3.3 percent in October, following a small 0.4 percent gain in September.

The drop in the category that includes auto loans was the largest one-month decline in this area since a 3.6 percent fall in May 1993.

The 0.6 percent overall drop was the first dip in consumer borrowing since a smaller 0.2 percent decrease back in March.