CONSUMER BORROWING: Drop doubles prediction
Written on February 8, 2009
Consumer borrowing fell for a third straight month in December, the longest stretch in 17 years, as households cut spending amid a steep recession and rising job layoffs.
The Federal Reserve said Friday that consumer borrowing dropped at an annual rate of 3.1 percent in December. The $6.6 billion decline was nearly double what analysts expected. It followed an $11 billion drop in November that was the biggest monthly plunge on records going back to 1943.
The weakness in December reflected a big 7 flexcheck cash advance.8 percent decline in the category that includes credit card debt, and a 0.2 percent drop in the category that includes auto loans.
FROM STAFF AND WIRE REPORTS; KEN LEISER, ANGELA TABLAC AND TIM LOGAN CONTRIBUTED
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