Growth in consumer credit fell in December to slowest pace in 8 months

Associated Press - February 7, 2008 3:33 PM ET

WASHINGTON (AP) - The Federal Reserve says consumers increased their borrowing in December at the slowest pace in eight months.

The modest increase of 2.1% marks a sharp slowdown from the more than 8% jump seen in November. It provides further evidence that economic activity was slowing as the year drew to a close.

The gain was about half the size of what economists were expecting.

Households have been struggling with the slump in housing, coupled with a credit squeeze, which has prompted banks to tighten their lending standards.