US consumer borrowing rose by a smaller-than-expected $4.71 billion in October, as the total of non-revolving consumer loans shrank. Analysts were expecting a $5 billion rise in consumer borrowing for October. A US Federal Reserve report released on Friday 7 December indicates that this is owing to fallout from the country''''s rapidly cooling housing market. Overall, October consumer credit rose at an annual rate of 2.27 per cent to a total of $2.490 trillion. The September increase was revised downward to $3.21 billion from an originally estimated $3.75 billion, while the August gain was revised upward to $20.75 billion. Non-revolving credit, which includes closed-end loans for big-ticket items like cars, boats, college educations and holidays, fell by $1.64 billion (1.26 per cent) to $1.561 trillion. In addition, September''''s report of non-revolving credit was revised to show a decline of $1.37 billion, from a previously reported $363 million increase. But August figures were upwardly revised to an increase of $12.68 billion, or 9.8 per cent. Revolving credit on credit and charge cards rose $6.34 billion (8.3 per cent) to $928.49 billion in October. This compares to an upwardly revised September increase of $4.59 billion. Credit conditions have tightened in the wake of a collapse in the US sub-prime mortgage market, which spurred a global credit crunch in August.
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