Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 8, 1994 TAG: 9404080216
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
SOURCE:
DATELINE: WASHINGTON LENGTH: Medium
Borrowing climbed at a 5.3 percent annual rate, the Federal Reserve said Thursday, the smallest increase since a 3.4 percent advance last June. Many economists had predicted borrowing would increase twice as much in February.
The Fed also said consumer credit rose $6.4 billion in January, revised upward from an estimated $6 billion a month ago. The percentage increase for January was revised from a 9.1 percent rate to 9.7 percent.
The government had reported that retail sales for the first two months of 1994 were flat, surging 1.5 percent in February after a 1.6 percent decline in January.
Analysts have predicted that consumer spending, which represents about two-thirds of the nation's economic activity, will level off this year. A buying binge in the final months of 1993 helped fuel booming expansion in the final quarter last year.
Still, economists have said the figures for the first two months of 1994 may have been distorted by the severe winter weather and the effects of the Los Angeles earthquake.
The Federal Reserve said the latest rise in borrowing brought outstanding debt to a seasonally adjusted annual rate of $800 billion in February, from a $796.5 billion rate in January.
Revolving credit, which includes credit cards, grew at an annual rate of 10.2 percent in February to $287.3 billion after a 14.6 percent advance in January.
Auto loans rose at a 5 percent rate to $280.2 billion after a 9.7 percent rise in January. Other borrowing slowed slightly, slipping at a 0.2 percent rate to $232.5 billion after increasing 11.6 percent in January.
- Associated Press
by CNB