Consumer Debt Growth Slows

The growth in consumer debt slowed sharply in May, climbing at an annual rate of just 4.9 percent. Some analysts attributed the slowdown to a tightening of credit standards by lenders worried about rising delinquency rates.

The Federal Reserve said that the May increase in debt followed a 7.2 percent rate of gain in April, both were the slowest increases since mid-1993. The May advance left total consumer debt at $1.15 trillion, up $4.7 billion from April.

Consumer debt had been rising at double-digit rates for much of the past year as credit card companies competing for business offered enticements for new customers.

But analysts said lenders have become more cautious in recent months as delinquency rates have been on the rise.

“The credit card companies are tightening their standards. They are offering fewer new credit lines than they were just six months ago,” said Paul Getman, an economist at Regional Financial Associates in West Chester, Pa.