August borrowing rose on student, auto loans

August borrowing rose on student, auto loans

Americans borrowed more in August, with the category that covers auto and student loans rising by the largest amount in nine months.

Consumer debt rose by a seasonally adjusted $20.1 billion in August following a gain of $16.6 billion in July, the Federal Reserve reported Friday. The August performance exceeded expectations. Many economists had been looking for a smaller increase of around $15 billion.

The gain was led by a $15.2 billion rise in auto loans and student loans, the biggest jump in this category since November. The category that covers credit cards saw an increase of $4.8 billion, up from a $1.3 billion rise in July.

The report on borrowing showed it rising to a record of $3.94 trillion. The Fed’s monthly report on consumer borrowing does not include mortgage debt or any other loans secured by real estate including home equity loans.

U.S. trade deficit hit records in August

Record imports drove the U.S. trade deficit up for the third straight month in August. The deficit in the trade of goods with China and Mexico hit records.

The Commerce Department said Friday that the trade gap — the difference between what America sells and what it buys abroad — rose to $53.2 billion in August from $50 billion in July. The August reading was the highest since February.

Imports rose 0.6 percent to a record $262.7 billion on higher shipments of cellphones and autos; exports slid 0.8 percent to $209.4 billion.

The United States ran a $76.7 ­billion deficit in the trade of goods such as machinery and cars. That gap was partially offset by a $23.5 billion surplus in the trade of services such as banking and tourism.

President Trump’s tariffs on imported steel, aluminum and on many Chinese products have yet to have an impact on the deficit, which is up 8.6 percent this year to $391.1 billion. The goods deficit with China rose 4.7 percent in August to a record $38.6 billion; and the gap with Mexico widened 56.9 percent to $8.7 billion, also a record.

A shoe manufacturer in western New York founded by two Civil War veteran brothers more than 150 years ago has closed, putting its 82 employees out of work. P.W. Minor in Batavia shut down Friday. A layoff notice filed with the state Department of Labor said the company would close Oc.t 5. The company said it closed for economic reasons. In 2016, two New York-based entrepreneurs bought the company days before it was set to close. P.W. Minor specialized in leather and orthopedic footwear.

CBS has hired the consulting firm Rally to help disperse $20 million to groups dedicated to supporting #MeToo and promoting workplace safety and equality for women. The announcement comes less than a month after the company parted ways with longtime chief executive Les Moonves after he faced multiple allegations of sexual misconduct. CBS expects to announce the recipients of the funds by Dec. 14. CBS announced the donation last month, shortly after the New Yorker magazine published allegations against Moonves that prompted his departure from the media giant.

This content was originally published here.

from Tumblr https://ift.tt/3f5wC99
via IFTTT