Credit Card Spending in the US

U.S. consumer credit increased at an annual rate of 7.7 percent, the ninth consecutive monthly growth, offering some relief to a string of weak economic data in recent weeks, reported the Federal Reserve on Friday.

The U.S. central bank said that total borrowing in June rose to 2,446.1 billion U.S. dollars from the revised figure of 2,430.6 billion dollars in May.

The Fed said that demand for revolving credit, the category that includes credit cards, surged 7.9 percent in June. It was the third monthly gain since August 2008, as U.S. consumers have been scaling back on credit card borrowing since the onset of the financial crisis.

The borrowing in the nonrevolving category that includes auto loans rose at an annual rate of 7.6 percent for the 11th straight month.

Consumer spending, which accounts for about 70 percent of the overall economic activity, remains the major drive of the U.S. economy.

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