Consumers Ease Credit Purchases

Americans slowed their borrowing in September as they cut back on the use of credit cards and auto loans amid a slowing economy.

The Federal Reserve said Tuesday that consumer credit increased by a seasonally adjusted $6.5 billion in September, or 5.2 percent at an annual rate, the slowest pace since October 1999.

Consumer credit in August grew by $12.3 billion, or at a 10.1 percent rate, according to revised figures. That was less than the $13.4 billion the central bank previously estimated.

In September, demand for revolving credit, such as that carried month to month on credit cards, rose by $3.6 billion - a 6.8 percent annual rate - down sharply from $6.7 billion and a 12.6 percent rate in August.