6 Mar 2010

US borrowing up in January

1:39 pm on 6 March 2010

Borrowing by consumers in the United States rose for the first time in a year in January.

The Federal Reserve says consumer credit rose 2.4% or $US5 billion from December 2009 to a total of $US2.45 trillion in the first month of 2010.

It was the first gain after 11 consecutive declines and the largest increase since July 2008. Borrowing in December was down by $US4.6 billion.

January's figure was boosted by an increase of $US6.62 billion, or 5%, in credit for car loans.

However, the BBC reports credit card borrowing declined by $US1.7 billion, or 2.3%. It has now fallen for 16 consecutive months.