According to June’s numbers as reported by the Federal Reserve, Americans backed off from using credit cards during the month of June, while car loans were on the rise.
The Associated Press reports that Americans’ credit behavior during the month of June followed the trends that have been set in recent periods. Credit card spending was down for the 21st straight month, which contributed to an overall $1.3 billion dollar drop in borrowing, the 16th drop in the past 17 months, as Americans continue to tighten their belts in the strength of the recession.
Despite this, one area that Americans are returning to is the auto lots. Car loans were up 2.4 percent in June, after a 1.4 percent increase in May. Many believe that July will also see strong car loan numbers, as auto sales have generally increased overall.
Although borrowing still dropped, the $1.3 billion dollar dip is significantly smaller than the expected estimate of $5 billion. While America is not out of the woods yet in terms of the recession, many believe that consumers are beginning to spend again, which is good for the overall economy.