US consumer credit increases moderately in August

The consumer credit in the United States increased at an annual rate of 2.7 percent in August comparing with a gain of 3.6 percent in the previous month, the US Federal Reserve (Fed) reported on Friday.

The report showed that loans on credit cards and other types of revolving credit increased by a rate of 3.5 percent in August following a 1.3 percent decline in July.

Demand for non-revolving debt, a category that includes car loans and loans for boats and recreational vehicles, increased by an annual rate of 2.3 percent in the month after a strong 6.6- percent gain in July.

The total US consumer credit increased to 2.1523 trillion dollars in August, a gain of 4.9 billion dollars compared with the previous month.

The consumer spending accounts for about two-thirds of the US economic activities and is the main force in pushing the economy forward. Some analysts said that the slower growth of US consumer credit in August is a sign that the higher gasoline prices had reduced the other consumer spending.

Source: Xinhua