Consumer Borrowing Slows Slightly in June

Borrowing by Americans, both on credit cards and to finance cars and other personal loans, slowed slightly in June from May’s torrid pace. The Federal Reserve said consumer credit increased by $12 billion in June, at an annual rate of 9.9%, more than the $9-billion increase analysts expected. Borrowing during May rose by an upwardly revised $14.2 billion, an annual rate of 11.85%, the second-largest gain in 17 months. Borrowing for revolving credit, a category that includes credit card debt, rose by $3.7 billion in June, up 7%. Nonrevolving credit, which includes loans for autos, mobile homes and boats, rose by $8.3 billion, up 12.1%. That was the biggest advance since a 16.3% rise in January 1999. Separately, U.S. corporations announced the largest number of planned job cuts in 17 months during July, a whopping 63,967--270% higher than in June, Challenger, Gray & Christmas reported. June’s 17,241 job cuts had been the lowest figure in 36 months, according to the report. The outplacement firm also said that July’s announced cuts were 17% higher than the figure of 54,709 a year ago, indicating signs of a slowing in the economy.