Consumer Borrowing Hits Record High In May

Source: Associated Press

Published: July 8, 2015

WASHINGTON – U.S. consumer borrowing climbed to a record high in May, propelled by a surge in auto and student loans.

Consumer borrowing increased $16.1 billion following a gain of $21.4 billion in April, the Federal Reserve reported Wednesday. The April increase had been the strongest monthly increase since July 2014. The gains pushed total borrowing to a record $3.4 trillion.

In May, borrowing in the category that includes autos and student loans rose by $14.5 billion. Borrowing in the category that covers credit cards rose by $1.6 billion after an increase of $8.5 billion in April.

The overall increase put total credit up 6.5 percent over the past 12 months. The rise is led by a 7.8 percent jump in borrowing in the auto and student loan category and a more moderate 3.2 percent rise in borrowing in credit cards.

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