U.S. consumers took out more auto and student loans in October, but cut back on credit card borrowing, a sign that they remain cautious about spending amid a spike in virus cases.
The Federal Reserve said Monday that consumer borrowing rose 2.1% in October to $4.16 trillion, pushed higher by a 4.8% jump in a category mostly made up of student and auto loans. Credit card borrowing fell 6.7%.
The figures suggest that consumers haven’t fully recovered from the pandemic recession. Overall borrowing is still 1% below its pre-pandemic level. Outstanding balances on credit cards are still down nearly 11% compared with their level in February before the pandemic intensified.
Christopher Rugaber | USA Today