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U.S. Consumer Borrowing Gains at Slowest Pace in a Year

By Reade Pickert

Shoppers at a Best Buy store on Black Friday in San Carlos, California, U.S., on Friday, Nov. 26, 2021. Consumers are finding some of the least-generous Black Friday and Cyber Week deals on record because of inflation, robust demand and diminished product availability. Photographer: David Paul Morris/Bloomberg

 U.S. consumer borrowing rose in January at the slowest pace in a year as households paid down credit-card balances that swelled during the holiday-shopping season.

Total credit increased $6.8 billion from the prior month after a revised $22.4 billion gain in December, Federal Reserve figures showed Monday. On an annualized basis, borrowing rose 1.9%. The median estimate in a Bloomberg survey of economists called for a $24.3 billion gain. 

Revolving credit outstanding, which includes credit cards, fell $218.7 million, the first decline since April. Two months earlier, revolving credit jumped a record $21 billion. Non-revolving credit, which includes auto and school loans, rose $7.1 billion.

More stories like this are available on bloomberg.com.

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