U.S. consumer credit falls in October by biggest amount in 14 years

Consumer borrowing in the United States fell in October at annual rate of 0.6 percent, the biggest drop since October 1992, the Federal Reserve reported Thursday.

The 0.6 percent decline trimmed 1.24 billion dollars from total consumer credit outstanding in October, pushing it down to 2.38 trillion dollars.

The October drop followed a revised 2 percent gain in September and marked the first decline in consumer credit since an decrease of 0.2 percent in March.

According to the Federal Reserve, the drop in October was led by borrowing in auto and other types of nonrevolving loans, which plunged 3.3 percent at an annual rate, compared with a 0.4 percent gain in September.

The drop of 3.3 percent was the largest monthly decline in the nonrevolving credit category since a 3.6 percent fall in May 1993.

Meanwhile, consumer credit in the category including credit cards and other revolving loans increased at an annual rate of 4.1 percent, down from a rise of 4.9 percent in September.

Consumer credit reflects consumer spending, which accounts for two thirds of overall economic activity and is a major force pushing the U.S. economy to grow.

Source: Xinhua