Consumer borrowing in the U.S. increased in May as consumers took out loans to buy cars, according to Bloomberg. Consumers borrowed $19.6 billion more in May than the month prior, which follows a $26.1 billion rise in April, according to data from the Federal Reserve. The April gain was the largest monthly increase since Dec. 2010.
Economists attributed the increase in borrowing to the confidence given consumers by the improving housing market and stronger employment numbers. “A pickup in residential real estate is crucial to get more broad-based strength in consumer credit,” David Sloan, senior economist at 4Cast Inc. said.
