Here's another sign of a strong economy: Consumer borrowing accelerated in July, the Federal Reserve reported yesterday. Total consumer credit rose $16.6 billion in July to a whopping $3.91 trillion. That’s an annual growth rate of 5.1 percent.
The bulk of the increase came from nonrevolving credit, which is typically auto and student loans. Those debts rose 6.4 percent in July after a 4 percent gain in the prior month, for the category's largest increase in eight months.
On the other hand, revolving credit, such as credit cards, rose only slightly in July. Borrowing on credit cards rose by 1.5 percent, although that was a reverse from a 1.4 percent drop in June.