US economy: Consumer Borrowing in U.S. Increases, Led by Credit Cards

Consumer borrowing in the U.S. rose in May for the eighth straight month, led by a boost in credit card use and student loans.

Credit increased by $5.08 billion after a revised $5.67 billion gain in April, the Federal Reserve said in Washington today. Economists projected a $4 billion increase, according to the median forecast in a Bloomberg News survey.

Consumers may be ramping up credit-card debt as gasoline prices and unemployment climbed to 9.2%.  At the same time, high fuel costs are probably keeping households from spending on big- ticket items like autos.

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