By David Lawder
WASHINGTON (Reuters) - U.S. consumer borrowing fell for the first time in more than a decade in August amid tighter credit markets, tougher lending standards and declining consumer spending, a Federal Reserve report showed on Tuesday.
August total consumer credit fell by $7.88 billion, or at a 3.7 percent annual rate, to $2.577 trillion, the Federal Reserve said. Analysts polled by Reuters were expecting a $5.2 billion rise.
Most of August's decline was from a $7.27 billion drop in non-revolving credit -- loans for big-ticket expenditures including cars, boats, college education and holidays.
It was the first time the Fed has reported a monthly drop in consumer credit since January 1998, when it fell by $4.7 billion, or 4.3 percent, the Fed said.
The drop in consumer borrowing came as retail spending slowed. U.S. retail sales fell 0.3 percent in August, and were down 0.8 percent excluding automobile and parts sales.
Non-revolving credit in August fell at a 5.4 percent annual rate to $1.608 trillion, its first fall since a $182 million dip in January 2005.
Revolving credit, comprised of credit and charge cards, fell $612.1 million, or 0.8 percent, to $969.03 billion. Revolving credit last fell in April, by $62.6 million. It had staged a $1.2 billion drop in May 2005.
Consumer borrowing looked set to drop again in September as an escalating credit crisis has hit the auto industry hard, preventing car shoppers from obtaining financing for new vehicle purchases.
September industry-wide U.S. auto sales fell 26 percent from a year earlier, with sales down as much as 34 percent at Ford Motor Co.
(Reporting by David Lawder; Editing by Leslie Adler)
