WASHINGTON (AP) - 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 says overall consumer credit expanded by $12.4 billion in June, down from May's $18.3 billion increase. Non-revolving credit, which includes auto and student loans, rose $8.3 billion, down from an $11.4 billion jump in May and the least since a $7 billion increase in June 2016. The category that includes credit cards climbed $4.1 billion.
The credit report is closely watched for clues about the direction of consumer spending, which accounts for about 70 percent of economic activity.
The Commerce Department reported last week that consumer spending slowed in June as incomes grew at the weakest pace in seven months.