Consumer borrowing increased at a faster rate in September as American households took out loans for cars and education, Bloomberg reported on Friday. The $15.9 billion increase in credit followed a revised $14 billion advance in August, the Federal Reserve reported last week. Non-revolving loans, including borrowing for motor vehicles and college tuition, rose $14.5 billion in September. Gains in the labor market and stock portfolios, the lowest gasoline prices in four years, and cheap borrowing costs are giving Americans the confidence to borrow. Faster wage growth would provide a bigger boost for households wary of taking on more debt. The September gain in consumer borrowing was in line with the $16 billion median forecast of 34 economists in a Bloomberg survey. Estimates ranged from increases of $12 billion to $22 billion. The report doesn’t track mortgages, home-equity lines of credit and other debt secured by real estate.
