|
The overall economy grew at a lackluster pace of 1.9 percent in the January-March quarter. Many economists believe growth slowed even further in the April-June quarter. Unless job growth picks up, consumer spending could weaken and drag on economic growth. Some economists believe the economy could get a boost in the second half from lower gas prices, which have been dropping sharply since April. More borrowing is generally viewed as a healthy sign for the economy. It suggests consumers are gaining confidence and growing more comfortable taking on debt. But it can also mean that more people are having trouble finding jobs and deciding to go back to school. Student loan debt has been rising sharply. Joel Naroff, chief economist at Naroff Economic Advisors, said growth in consumer credit is still being held back by the weak gains in income. Households squeezed by stagnant pay are reluctant to take on debt at the pace they did before the recession, Naroff said. Households began borrowing less and saving more when the recession began and unemployment surged. While the expectation is that consumers are ready to resume borrowing, they are not expected to load up on debt the way they did during the housing boom of the last decade.
The Federal Reserve's borrowing report covers auto loans, student loans and credit cards. It excludes mortgages, home equity loans and other loans tied to real estate.
[Associated
Press;
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor