WASHINGTON — Americans cut back sharply on their credit-card purchases in April, a sign that some may be worried about the slowdown in hiring.
The Federal Reserve said Thursday that consumers increased borrowing by $6.5 billion in April, just half of the March gain.
The gain was driven by a $9.96 billion rise in a category that includes auto and student loans. That offset a $3.4 billion drop in credit-card debt, the first decline since January.
Total borrowing rose to a seasonally adjusted $2.55 trillion. That was slightly below the all-time high of $2.58 trillion reached in July 2008, eight months after the Great Recession began.
Consumers had begun to use credit cards more often at the start of the year, which coincided with solid job gains this winter. But hiring slowed sharply in April and May, which may have forced some to cut back on using their plastic.
Employers added just 69,000 jobs in May, the fewest in a year, and just 77,000 jobs in April.
The economy added 252,000 jobs a month from December through February. Since then, job growth has slowed to a lackluster 96,000 a month.
More borrowing is generally viewed as a healthy sign for the economy. It suggests consumers are gaining confidence and growing more comfortable taking on debt.
But if consumers are cutting back on credit-card debt, it may suggest they are worried about the economy.
Consumer spending grew in the first three months of the year at the fastest pace since late 2010. Consumer spending accounts for 70 percent of economic activity.
Still, most U.S. households are spending more while saving less. They saved just 3.6 percent of their after-tax income in the January-March quarter, down from 4.2 percent in the October-December quarter.
