Consumer loans drop in May

WASHINGTON, July 8 (UPI) -- U.S. consumer credit dropped at an annual rate of 1.5 percent in May, the Federal Reserve Bank said Wednesday.

Revolving loans, which refer to credit card borrowing, fell by an annual rate of 3.75 percent in the month, as consumers have pared back on spending in the midst of a prolonged recession.

Non-revolving debt, which includes automobile loans, fell by an annual rate of 0.25 percent.

Revolving loans dropped by $3.3 billion, while non-revolving loans declined by $400 million, the Fed said.