The US consumer loans have the biggest gain since the end of 2017

Consumer loans rose at their fastest pace in July since late 2017, driven by a huge jump in credit card use.

Consumer loans rose by $ 23.3 billion in July after a $ 13.8 billion advance in June, the Federal Reserve reported Monday. It was the largest monthly gain since a $ 29.9 billion jump in November 2017.

The July major gain was driven by a significant increase in credit card borrowing, which rose by $ 1[ads1]0 billion in July after having fallen by $ 186 million in June.

Loans in the auto and student loan category also made a significant profit, increasing by $ 13.3 billion in July following an increase of $ 14 billion in June.

Consumer loans are carefully looked at for signs of consumer spending.

The economy has faced headwinds this year in areas such as manufacturing and export sales, reflecting uncertainty caused by President Donald Trump's trade war with China and a declining global economy.

But the adverse shocks have been dampened by consumer spending strength, which accelerated spring to the fastest pace in five years after a sluggish start in 2019. Consumer spending represents about 70% of US economic activity.

Economists are looking for household spending to continue to be solid for the rest of the year, helped by rising wages and the lowest unemployment rate in nearly half a century.

The overall economy, measured by gross domestic product, grew by 3.1% in the first quarter, reflecting some particular factors, but fell to 2% growth in the April-June quarter. Economists predict GDP growth on average around 2% in the second half of this year.

The increase in July pushed the total consumer credit to a record $ 4.1 trillion. The Fed's monthly credit report does not cover mortgages or other debt secured by property, such as mortgages.