U.S. Consumers Scale Back Rate Of Credit Use In October

Consumers increased their use of credit in October by the slowest pace in nearly a year despite strong economic growth and rapid advances in hiring, Federal Reserve data show. Americans boosted overall credit by an annual rate of 4.9%, or $13.2 billion, to $3.28 trillion in October. That follows a 5.7% gain in September and 5% in August. The slowdown follows a four-month stretch from the early spring to the start of summer during which credit grew at an 8% average rate. Americans may have cut back because of a temporary decline in U.S. stocks markets during a particularly rocky period in equity markets. Households also have increased savings lately. Revolving credit - mostly credit cards - rose at a scant 1.3% clip. Non-revolving credit for purchases such as autos and student loans climbed a faster 6.2%, though that's the smallest increase since last December.