US consumer borrowing up as credit card use rises - 21 News Now, More Local News for Youngstown, Ohio -

US consumer borrowing up as credit card use rises

Posted: Updated:
  • More NewsMore>>

  • Truck smashes into Boardman apartment

    Truck smashes into Boardman apartment

    Thursday, April 24 2014 1:03 PM EDT2014-04-24 17:03:16 GMT
    Investigators are trying to determine the circumstances behind an accident that resulted in a pickup truck striking a building along Southern Boulevard.First responders arriving at an apartment just south of Indianola Road early Wednesday afternoon found a the bed of a white Chevy Silverado pickup truck had broken through the front wall of the building.It's not known if anyone was injured.Authorities are still on the scene.Stay with 21 News and wfmj.com for more on this developing story.More >>
    Investigators are trying to determine the circumstances behind an accident that resulted in a pickup truck striking a building along Southern Boulevard.First responders arriving at an apartment just south of Indianola Road early Wednesday afternoon found a the bed of a white Chevy Silverado pickup truck had broken through the front wall of the building.It's not known if anyone was injured.Authorities are still on the scene.Stay with 21 News and wfmj.com for more on this developing story.More >>
  • YSU Stem College Dean cut from list of presidential candidates

    YSU Stem College Dean cut from list of presidential candidates

    Thursday, April 24 2014 12:53 PM EDT2014-04-24 16:53:24 GMT
    Dr. Martin AbrahamDr. Martin Abraham
    The Youngstown State UniversityBoard of Trustees has revealed the names of the six finalists seeking the YSU presidency.Althoughformer Ohio State and YSUcoachJim Tresselmade the cut, Dr. Martin Abraham's name is absent from the list.Below are the names submitted by the Youngstown State University Presidential Search Advisory Committee: Mary Cullinan Gary L. Miller Gayle L. Ormiston D. Marshall Porterfield Steven M. Rothstein James P. TresselTressel, who interviews for the University of Akron...More >>
    The Youngstown State UniversityBoard of Trustees has revealed the names of the six finalists seeking the YSU presidency.Althoughformer Ohio State and YSUcoachJim Tresselmade the cut, Dr. Martin Abraham's name is absent from the list.Below are the names submitted by the Youngstown State University Presidential Search Advisory Committee: Mary Cullinan Gary L. Miller Gayle L. Ormiston D. Marshall Porterfield Steven M. Rothstein James P. TresselTressel, who interviews for the University of Akron...More >>
  • UPDATED

    Hostage released at the Trumbull County Jail

    Hostage released at the Trumbull County Jail

    A five hour hostage situation at the Trumbull County jail ended with the safe release of a corrections guard taken hostage by 3 inmates.

    More >>
    A five hour hostage situation at the Trumbull County jail ended with the safe release of a corrections guard taken hostage by 3 inmates.

    More >>

WASHINGTON (AP) - Americans increased their borrowing in May at the fastest pace in a year. Borrowing in the category that includes credit cards reached its highest point since the fall of 2010.

Increased borrowing typically means that consumers are feeling more confident.

Americans stepped up their borrowing by $19.6 billion in May compared with April, the Federal Reserve said Monday in its monthly report on consumer credit. That was the biggest jump since a $19.9 billion rise in May 2012.

Total borrowing reached a record $2.84 trillion.

The category that includes credit card use rose $6.6 billion, also the largest gain in a year. Credit card debt reached $847.1 billion, the most since September 2010. Credit card debt remains about 16 percent below its high of $1.02 trillion in July 2008 - just before the financial crisis erupted.

Borrowing for autos and student loans rose $13 billion in May. That was the sharpest increase since February. This category of borrowing has been rising especially fast, driven by loans to pay for college.

The Federal Reserve's consumer credit report does not separate student loans from auto loans. But data from the Federal Reserve Bank of New York show that student loan debt has been the biggest driver of borrowing since the Great Recession officially ended. In part, that's because some unemployed Americans have returned to school for training in hopes of landing a job.

More credit card borrowing could help boost consumer spending, which accounts for 70 percent of economic activity. But some consumers have been hesitant to run up high-interest debt since the recession ended. Some economists say many Americans remain cautious because higher Social Security taxes this year have reduced paychecks for most.

Despite the jump in credit card debt in May, consumers aren't likely to increase their card use to pre-recession levels, said Cooper Howes, an economist at Barclays Research. Credit card debt is known as revolving credit.

"We expect the trends of student loan-driven expansion ... and only small changes in revolving credit to continue in coming months," Howes said.

The measure of card debt in the Fed's report has risen $15.8 billion this year. That compares with annual increases of $25 billion to $50 billion in credit card debt before the Great Recession, which officially began in December 2007 and ended in June 2009.

Rising home prices and steady job growth have helped offset any damage to the U.S. economy from the higher Social Security tax.

Employers added 195,000 jobs in June and many more in April and May than previously thought, the government said Friday. Pay was also up sharply. Over the past 12 months, pay has risen 2.2 percent while consumer prices have increased 1.4 percent.

Consumers boosted their spending from January through March but reduced the pace of their savings to finance it. After-tax income dropped in the first quarter.

That decline reflected, in part, the increased Social Security tax that took effect Jan. 1. A person earning $50,000 a year has about $1,000 less to spend this year. A household with two highly paid workers has up to $4,500 less.

The economy grew at an annual rate of only 1.8 percent in the January-March quarter. Many economists have forecast that growth in the April-June quarter will weaken further to around 1.5 percent. But they think the economy will rebound somewhat in the second half of this year as stronger employment growth fuels more consumer spending.

The Federal Reserve's borrowing report covers auto loans, student loans and credit cards. It excludes mortgages, home equity loans and other loans related to real estate.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • SpotlightSpotlightMore>>

  • Updated

    The Scrappers host “POPS at the Ballpark” featuring the Youngstown Symphony Orchestra

    The Scrappers host “POPS at the Ballpark” featuring the Youngstown Symphony Orchestra

    Tuesday, April 15 2014 2:04 PM EDT2014-04-15 18:04:57 GMT
    NILES, Ohio – The Mahoning Valley Scrappers and the Youngstown Symphony Orchestra are excited to host one of the Valley's premiere summer events, POPS at the Ballpark,More >>
    NILES, Ohio – The Mahoning Valley Scrappers and the Youngstown Symphony Orchestra are excited to host one of the Valley's premiere summer events, POPS at the Ballpark, presented by Stanley E. Shearer with Northwestern Mutual and 21 WFMJ on Saturday, August 23, 2014 at Eastwood Field.More >>
  • More From wfmj.comMore>>

  • Restaurant plans new statue of Joe Paterno

    Restaurant plans new statue of Joe Paterno

    Wednesday, April 23 2014 12:57 PM EDT2014-04-23 16:57:56 GMT
     (AP) - Fans of the late Penn State University football coach Joe Paterno are planning to commission a new bronze statue of him, and place it across from the school. Organizers say the statue will feature Paterno sitting on a bench reading. It's expected to cost about $300,000 and would hopefully be done in 2015 by Philadelphia sculptor Zenos Frudakis. Penn State spokeswoman Lisa Powers says the school isn't involved in the plan. But a restaurant owner in downtown State Col...More >>
     (AP) - Fans of the late Penn State University football coach Joe Paterno are planning to commission a new bronze statue of him, and place it across from the school. Organizers say the statue will feature Paterno sitting on a bench reading. It's expected to cost about $300,000 and would hopefully be done in 2015 by Philadelphia sculptor Zenos Frudakis. Penn State spokeswoman Lisa Powers says the school isn't involved in the plan. But a restaurant owner in downtown State Col...More >>
  • Woman allegedly sold heroin from hospital bed

    Woman allegedly sold heroin from hospital bed

    Wednesday, April 23 2014 11:01 AM EDT2014-04-23 15:01:45 GMT
    A woman in western Pennsylvania is accused of selling heroin from a hospital intensive care unit and a hospital room.More >>
    A woman in western Pennsylvania is accused of selling heroin from a hospital intensive care unit and a hospital room.More >>
  • Jet stowaway undetected for hours before departure

    Jet stowaway undetected for hours before departure

    Tuesday, April 22 2014 11:44 PM EDT2014-04-23 03:44:25 GMT
    Surveillance cameras at San Jose International Airport successfully captured the teenager on the tarmac, climbing up the landing gear of a jet. But in the end, the cameras failed because no one noticed the security...More >>
    A 15-year-old stowaway who survived a flight over the Pacific in a jet's wheel well spent seven hours undetected in what is supposed to be a highly secure area of San Jose International Airport before the flight...More >>
  • Hot ClicksHot ClicksMore>>

  • Can an app save the planet?

    Can an app save the planet?

    This startup's Earth Day launch has a massive goal: Cut carbon emissions globally. It has its work cut out for it.
    More >>
    This startup's Earth Day launch has a massive goal: Cut carbon emissions globally. It has its work cut out for it.
    More >>
  • 'Captain America' holds onto top box office spot

    'Captain America' holds onto top box office spot

    Monday, April 21 2014 10:47 PM EDT2014-04-22 02:47:39 GMT
    LOS ANGELES (AP) - Captain America really is unbeatable - at least at the box office"Captain America: The Winter Soldier" has been the top draw at theaters for three consecutive weeks, vanquishing would-be foes including the new thriller starring Johnny Depp.According to Monday's final box office figures, the Marvel sequel added $25.6 million in ticket sales over the weekend. "The Winter Soldier" has made more than $200 million domestically since logging the best April opening in history."Hea...More >>
    LOS ANGELES (AP) - Captain America really is unbeatable - at least at the box office"Captain America: The Winter Soldier" has been the top draw at theaters for three consecutive weeks, vanquishing would-be foes including the new thriller starring Johnny Depp.According to Monday's final box office figures, the Marvel sequel added $25.6 million in ticket sales over the weekend. "The Winter Soldier" has made more than $200 million domestically since logging the best April opening in history."Hea...More >>
  • Netflix poised to raise prices after strong 1Q

    Netflix poised to raise prices after strong 1Q

    Monday, April 21 2014 10:37 PM EDT2014-04-22 02:37:26 GMT
    SAN FRANCISCO (AP) - Netflix is preparing a sequel unlikely to be a hit with its subscribers. The Internet video service is about to raise its prices for the first time in three years to help pay for more Internet video programming such as its popular political drama "House of Cards."The increase, to take place sometime before July, will hike prices by $1 or $2 per month for new customers. The company's nearly 36 million current subscribers will continue to pay $8 per month for at least the n...More >>
    SAN FRANCISCO (AP) - Netflix is preparing a sequel unlikely to be a hit with its subscribers. The Internet video service is about to raise its prices for the first time in three years to help pay for more Internet video programming such as its popular political drama "House of Cards."The increase, to take place sometime before July, will hike prices by $1 or $2 per month for new customers. The company's nearly 36 million current subscribers will continue to pay $8 per month for at least the n...More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms