Americans increased their borrowing in June at the slowest annual pace in three months as the level of credit card debt fell slightly.
The Federal Reserve says consumer debt rose a seasonally adjusted $10.2 billion in June from the prior month to a total of $3.91 trillion. Consumer borrowing increased at an annual rate of 3.1% in June, the slowest annual gain since March.
The category that includes credit cards slipped by $185 million in June after having surged by nearly $9.6 billion in May.
Consumer borrowing trends are closely monitored for clues they can provide about the willingness of consumers to borrow more to support their spending. Consumer spending accounts for 70% of U.S. economic activity.