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

DATE: FRIDAY, July 9, 1993                   TAG: 9307090097
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

SHOPPERS TAKE ON ADDITIONAL CREDIT

Car loans rose at a seasonally adjusted annual rate of 7.9 percent, compared with a 1.7 percent gain in April, the Federal Reserve said. Revolving credit, which includes credit cards, advanced at a 4.3 percent annual rate, compared with 7.9 percent rate the month before.

However, a measure of overall consumer borrowing declined during the month because of a technical factor, the Fed said. Consumer installment credit outstanding fell at a seasonally adjusted annual rate of 1.3 percent to $753.9 billion.

The decline, the first since July 1992, followed increases at an annual rate of 4.8 percent in April and 4.7 percent in May.

The May drop was entirely accounted for by an 18.1 percent decrease in a miscellaneous category, which includes loans for mobile homes, education, boats, trailers and vacations.

The central bank attributed that to the transfer of $3 billion in existing loans from financial institutions covered by its survey to holders not surveyed.

During the recession, consumers reduced their borrowing and sought to pay down debts. They've generally been less wary of taking on added debt since last summer.

Looking ahead, most economists expect moderate increases in both retail sales and consumer borrowing, provided the job market continues its slow improvement.