WASHINGTON – Americans borrowed more during October to buy cars and attend college, while also charging more on their credit cards, the second straight month consumers have done so, according to the Federal Reserve.
The Fed on Wednesday released figures showing total consumer borrowing rose by $7.6 billion, and the back-to-back monthly gains are a sharp increase to August, when borrowing was down. The biggest increase in borrowing during October was in automobile and student loans, which were up by 5.3%. Credit card purchases increased 0.6%, the Fed said.
The figures seem to coincide with other numbers showing the economy grew at an annual rate of 2.5% from July through September, nearly three times the growth rate in the first six months of the year. Some analysts, however, said Americans are borrowing more because their disposable income has decreased.
