By Mark Niquette
(Bloomberg) — U.S. consumer borrowing rose in August at the slowest pace in six months, restrained by a pullback in credit-card balances.
Total credit outstanding climbed US$363 million after a revised $18.1 billion gain in July, Federal Reserve data showed Tuesday. The median projection in a Bloomberg survey of economists called for a $14 billion rise.
Credit-card and other revolving debt outstanding fell roughly $6 billion, partially unwinding a surge in July. Non-revolving credit, such as loans for vehicle purchases and school tuition, increased $6.3 billion. The report doesn’t include mortgages.
After taking on more debt in July to fuel their spending, consumers turned more cautious a month later as anxiety built about the labor market. For many Americans carrying credit-card balances, high interest rates charged on those accounts remain a financial burden.
The Fed’s report showed the average rate on credit-card accounts with assessed interest was 22.8% as of August, the highest this year.
According to a separate New York Fed survey in September, consumers said there was an almost 15% probability of losing their current job over the next 12 months, the highest since April. Respondents also placed greater than 41% odds that the unemployment rate will be higher a year from now.
–With assistance from Julia Fanzeres.
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Last modified: October 7, 2025