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

DATE: TUESDAY, February 8, 1994                   TAG: 9402080032
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

CREDIT CLIMBS, BIG TIME

Borrowing climbed at a 11.2 percent annual rate in December, following a revised 10.7 percent increase in November, the Federal Reserve said Monday. The November increase was originally estimated to be 10.6 percent.

The latest rise, the seventh in a row, brought outstanding debt to a seasonally adjusted annual rate of $789.8 billion.

The buying binge in stores and auto showrooms was spurred by low interest rates that encouraged consumers to finance purchases of cars and home items such as furniture and appliances.

It was the third straight double-digit increase in borrowing, coinciding with a 5.9 percent growth rate in the economy for the fourth quarter of 1993 - the biggest expansion in six years.

Consumer spending represents about two-thirds of the nation's economic activity.

Auto loans increased at a 6.4 percent annual rate to $278.3 billion, following a 13 percent rise in November.

Revolving credit, which includes credit cards, rose at a 10.4 percent rate to $281.7 billion on the heels of a 9.3 percent November jump.

Other kinds of consumer loans rose 17.9 percent to $229.8 billion after a 9.4 percent increase in November.