Ahead of the Bell: US consumer borrowing

US consumer borrowing expected to post solid gain in September

Associated Press
US consumer borrowing hits another record in June

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In this June 8, 2015 photo, credit card customers are directed to a pay station at the green market in downtown Miami. The Federal Reserve releases consumer credit data for June on Friday, Aug. 7, 2015. (AP Photo/J Pat Carter)

WASHINGTON (AP) -- The Federal Reserve releases its September report on consumer borrowing at 3 p.m. Eastern Friday.

BORROWING UP: The projection from economists is that borrowing increased by $17.2 billion in September, according to a survey by data firm FactSet.

CREDIT GAINS: Borrowing advanced at a solid pace in August, rising by $16 billion to a fresh record of $3.47 trillion.

Economists believe consumer spending, which accounts for 70 percent of economic activity, will remain strong in coming months with most households more comfortable taking on debt.

A strong consumer sector will help to offset weakness in other parts of the economy.

The overall economy, as measured by the gross domestic product, grew at a lackluster annual rate of 1.5 percent in the July-September quarter, less than half the 3.9 percent rate turned in during the April-June period.

Part of that weakness reflected global economic weakness which is causing problems for American manufacturers. However, economists are forecasting that growth will rebound in the final three months of this year to around 2.5 percent, with the revival fueled in large part by consumer spending.

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