Borrowing Grows at Slowest Pace in 5 Months

Borrowing by U.S. consumers grew in April at the slowest pace in five months as a yearlong series of rate increases by the Federal Reserve made money more expensive, the Fed said.

Consumer credit, or non-mortgage loans to individuals, rose $1.3 billion, or 0.7% at an annual rate, to $2.131 trillion in April. Credit card borrowing fell for a second straight month. In March, consumer debt rose $6.9 billion, more than first estimated.

Economists projected an increase of $7.4 billion in consumer credit in April, the median in a Bloomberg News survey. The Fed’s first estimate for March was an increase of $5.5 billion.