Thursday, June 7, 2012
Americans cut back sharply on their credit card purchases in April, a sign that some may be worried about the slowdown in hiring.
The Federal Reserve says consumers increased borrowing by $6.5 billion in April, just half of the March gain.
The gain was driven by a $9.96 billion increase in a category that includes auto and student loans. That offset a $3.4 billion decline in a measure of credit card debt, the first decline since January.
Total borrowing rose to a seasonally adjusted $2.55 trillion. That was slightly below the all-time high of $2.58 trillion reached in July 2008, eight months after the Great Recession began.
The decline in credit card debt follows a report last week that showed hiring slowed sharply in April and May.