Consumer credit in US decrease in October

Consumer credit fell yet again in October, in the ninth straight month of decline for the measure.

Credit fell by $3.51 billion, or 1.7 percent at an annual rate, to $2.48 trillion, according to a Federal Reserve report released today in Washington. Borrowing dropped by $8.77 billion in September, less than previously estimated.

"Households are still in the process of deleveraging. They are increasing spending, but it`s coming out of the savings they have accumulated during the recession," said Bernard Baumohl, chief global economist at the Economic Outlook Group.

"They are not acquiring new debt. We need to have consumers ramp up their spending if this economy is to continue to grow through 2010."