Wednesday, November 08, 2006

Drop in Borrowing
Posted on Raw Story
I wonder what this means? Do you suppose that higher interest rates and slower equity loans due to a declining home market is having an impact? Is this a forecast that our economy is going to fall? Worth keeping an eye on.

US consumer credit sank by its largest amount in almost 15 years last month, US Federal Reserve figures show.

Consumer borrowing fell by $1.2bn (£629m) in September, its first decline since March and its biggest drop since a $1.78bn fall in April 1992.

The drop meant borrowing fell at annual rate of 0.6% in the month compared with a 4.2% increase in August.

The central bank blamed a sharp fall in loans for cars, boats, education expenses and holidays for the decline.

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