Trending
Credit rose at slower pace in June
WASHINGTON (AP) -- American consumers increased their borrowing at a slower pace in June, as the category that includes auto and student loans posted the smallest gain in a year.
The Federal Reserve said Monday that overall consumer credit expanded by $12.4 billion in June, down from May's $18.3 billion increase and less than economists had been expecting.
The credit report is closely watched for clues about the direction of consumer spending, which accounts for about 70 percent of economic activity.
Non-revolving credit, which includes auto and student loans, rose $8.3 billion, down from an $11.4 billion jump in May and the smallest amount since a $7 billion increase in June 2016. The category that includes credit cards climbed $4.1 billion, down from May's $6.9 billion gain.
The June increase brought consumer credit to a fresh record of $3.86 trillion. The Fed's monthly credit report does not include mortgages or other debt secured by real estate, including home-equity loans.
The U.S. economy rose at a solid 2.6 percent annual pace from April through June on a healthy increase in consumer spending. The job market also looks good. Employers last month added 209,000 jobs, and the unemployment rate fell to a 16-year low 4.3 percent.
But the Commerce Department reported last week that consumer spending slowed in June as incomes grew at the weakest pace in seven months.
Iran signs deal with Renault
TEHRAN, Iran (AP) -- Iran signed the country's biggest-ever car deal on Monday to build tens of thousands of cars annually under a joint venture with French automobile manufacturer Groupe Renault, buoying its manufacturing industry in defiance of the Trump administration's moves to isolate the country.
The $778 million deal follows the lifting of the U.N. and European Union sanctions after Iran's 2015 nuclear agreement with world powers to curb its controversial uranium enrichment program, a possible pathway to nuclear weapons.
It also comes just days after new U.S. sanctions on Iran were signed by President Donald Trump, who spoke with French President Emmanuel Macron over the weekend about ways to counter Iran's influence in Mideast conflicts. The U.S. legislation, first passed by Congress, imposes penalties on people involved in Iran's ballistic missile program and anyone who does business with them.