Consumer Debt Increase Slows in April

Americans increased their borrowing at a less-feverish pace in April, but still more than analysts expected, Federal Reserve figures showed. Total consumer credit rose to a seasonally adjusted $9.3 billion for an annual growth rate of 7.8%, the Fed said. That was the smallest gain since October, when Americans increased their borrowing by $5.3 billion. Analysts expected a rise of $8 billion in April. Consumer credit in March grew by $10.7 billion, stronger than the Fed estimated one month ago. That translates into an annual growth rate of 9%. In April, demand for revolving credit, such as that used for credit cards, rose $5.9 billion, an 11.4% annual rate, down from $7 billion and a 13.8% rate in March. The total amount of nonrevolving credit, such as loans for new cars, vacations and other big-ticket items, advanced by $3.4 billion in April, a 5% annual rate. That also was down from $3.7 billion and a 5.5% rate in March. The Fed’s consumer credit statistics do not track loans secured by real estate, omitting home equity loans, which have grown in popularity over the last decade.