US consumer credit goes up

Washington, July 10 (IANS) US consumer credit increased at an annual rate of 8 percent in May as consumers stepped up their borrowing, the US Federal Reserve reported.

Total consumer borrowing rose by $17.1 billion to $2.573 trillion in May, a much faster growth pace than the previous month, the central bank said in a report.

Revolving debt, the category which includes credit cards, jumped $8 billion to $870.2 billion in May. The borrowing in the non-revolving category that includes auto loans rose $9.1 billion to $1,702.6 billion, reported Xinhua.

Consumer spending, which accounts for about 70 percent of the overall US economic activity, is the major engine of US economic growth.