WASHINGTON: Consumers increased their borrowing in December at the slowest pace in six months, as growth in credit card usage decelerated sharply. Total borrowing rose $14.2 billion in December vs. November’s increase of $25.2 billion, the Federal Reserve reported Tuesday. Borrowing in the category that covers vehicle purchases and student loans rose by $11.8 billion, below the $13.4 billion jump in November. But borrowing in the category that covers credit cards slowed to a gain of just $2.4 billion after a surge of $11.8 billion in November. It was the weakest showing since credit card debt fell last February.
The December increase pushed total borrowing to a record of $3.76 trillion. Economists think growth in consumer credit will remain strong in 2017, reflecting low unemployment and further solid gains in employment and consumer confidence.