WASHINGTON (AP) — U.S. consumers bumped up their borrowing in January at the slowest rate pace in nearly three years, as outstanding revolving debt — such as credit cards — slipped from December.
The Federal Reserve says borrowing rose $10.5 billion in January, an annual increase of just 3.58 percent. That marks the smallest gain since February 2013. Total borrowing was $3.54 trillion.
Borrowing in the revolving category that covers credit cards slipped $1.1 billion, after a strong increase in December that corresponded with holiday shopping. Borrowing in the category that covers auto and student loans increased $11.6 billion last month.
Consumer spending, which accounts for 70 percent of economic activity, is expected to accelerate in early 2016.
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