American consumers increased their borrowing at a slower pace in June, as the category that includes auto and student loans posted the smallest gain in a year.
The Federal Reserve said Monday that overall consumer credit expanded by $12.4 billion in June, down from May's $18.3 billion increase and less than economists had been expecting.
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The credit report is closely watched for clues about the direction of consumer spending, which accounts for about 70 percent of economic activity.
Non-revolving credit, which includes auto and student loans, rose $8.3 billion, down from an $11.4 billion jump in May and the smallest amount since a $7 billion increase in June 2016. The category that includes credit cards climbed $4.1 billion, down from May's $6.9 billion gain.
The June increase brought consumer credit to a fresh record of $3.86 trillion. The Fed's monthly credit report does not include mortgages or other debt secured by real estate, including home-equity loans.
The U.S. economy rose at a solid 2.6 percent annual pace from April through June on a healthy increase in consumer spending. The job market also looks good. Employers last month added 209,000 jobs, and the unemployment rate fell to a 16-year low 4.3 percent.
But the Commerce Department reported last week that consumer spending slowed in June as incomes grew at the weakest pace in seven months.