U.S. consumer credit slowed its expansion pace in October, data released by the Federal Reserve showed Friday.
Total outstanding consumer credit increased at an annual rate of 4.9 percent in October, slower than a revised gain of 5.7 percent in the previous month.
Revolving debt, which includes credit cards, rose 1.3 percent to 882.6 billion U.S. dollars in October, while the borrowing in the non-revolving category that includes auto and student loans rose at an annual rate of 6.2 percent to 2.396 trillion dollars.
Consumer spending, which accounts for about 70 percent of the overall U.S. economic activity, is the major engine of U.S. economic growth. A rise in consumer credit indicates that consumers have boosted their borrowing. The slower consumer credit growth in October suggested that slow growth in income continued to hold down consumers' willingness to shop on credit.
The Fed's borrowing report tracks credit card debt, auto loans and student loans, but not mortgages or home equity loans.