Consumer credit growth slows

Consumer borrowing posted the smallest rise in six months in April as Americans paid off some of their credit card debt.

The Federal Reserve reported that consumer borrowing rose at an annual rate of just 1.3% in April, down from a 7% rise in March. It was the slowest growth in borrowing since a 0.1% rate of increase in October.

The slowdown was led by a 0.5% rate of decline in the category of debt that includes credit cards.

That meant consumers were paying off more credit card debt than they incurred in May, something that had not occurred in 13 months.