OTHER NEWS - May 6, 1995

Consumer Credit Up Despite Weakening Economy: Consumer credit increased more rapidly in March than it has in seven months, despite other evidence that the economy is slowing, the Federal Reserve Board said. Borrowing rose 17.9% at an annual rate in March, or $13.8 billion, the steepest increase since a jump of 21.3%, or $15.2 billion, in August. In February, credit rose 10%, or $7.7 billion. Most signs have pointed to a dramatic slowdown in consumer spending this year after a booming expansion last year. The surprisingly strong pickup in borrowing in March could be due to the growing habit among Americans of paying with plastic instead of cash for an increasing variety of goods, including groceries. Consumer credit includes all household debt not secured by real estate, including home equity loans and home mortgages.