US consumer credit increases 4.9 percent in May
WASHINGTON, July 8 (Xinhuanet) -- The consumer credit in the United States increased at a seasonally adjusted annual rate of 4.9 percent in May as the stronger economy made the consumers more willing to take on debt, the Federal Reserve (Fed) reported on Thursday.
The report showed that demand for revolving credit, such as credit cards, rose at a 2.6 percent rate in the month, comparing with a decline of 5 percent rate in April.
For nonrevolving credit, which includes loans for cars, vacations and education, demand went up at a strong 6.2 percent pace in May following a gain of 7.9 percent in the pervious month.
The increases pushed total US consumer credit outstanding to a record 2.03 trillion dollars in the month, an increase of 8.19 billion dollars from April.
The consumer spending accounts for about two-thirds of the US economic activities and is the main force in pushing the economy forward. The strong increase of consumer credit is another sign that the US economy is recovering briskly recently.
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