
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, July 10, 1990                   TAG: 9007100094
SECTION: BUSINESS                    PAGE: A3   EDITION: STATE 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

CONSUMER CREDIT INCREASES IN MAY

Americans took out $3.9 billion more in consumer credit than they paid off in May, 10 times the amount incurred only a month earlier, the government said Monday.

The Federal Reserve said consumer credit increased at a seasonally adjusted annual rate of 6.5 percent, up from the previous month's 0.6 percent growth rate. Net new debt in April totaled $390 million.

It was the highest annual rate of increase since a 7.5 percent rate in October, when Americans borrowed $4.4 billion more than they paid off.

The May increase was concentrated in credit card debt, which rose $3.1 billion, or an annual rate of 18.5 percent.

Automobile loans continued to decline in May, but at a slower rate. Debt dropped $87 million, a 0.4 percent rate of decline. That compared with a net decline in automobile debt of $2 billion the previous month.

Bank and credit union loans not secured by real estate rose $533 million, a 3.1 percent annual rate after a 4 percent annual growth rate in April.

Borrowing for mobile homes increased $325 million, a 17.2 percent annual rate of growth after a 0.3 percent decline the previous month.

by CNB