WASHINGTON – Consumer borrowing surged in July at its fastest pace since late 2017, driven by a big jump in credit card use.
The Federal Reserve said overall consumer borrowing increased by $23.3 billion in July after a $13.8 billion advance in June. It was the biggest monthly gain since a $29.9 billion jump in November 2017.
The large July gain was led by a sizable increase in borrowing in the category covering credit cards, which rose by $10 billion in July after having fallen by $186 million in June. Borrowing in the category that covers auto and student loans also posted a sizable gain, rising by $13.3 billion in July following a $14 billion June increase.
Consumer borrowing is closely watched for signs it provides about consumer spending.
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