Business News
Borrowing rose $19.3B in Sept.WASHINGTON — American consumers boosted their borrowing in September, a potential sign that recent job growth and wage gains have left them slightly more comfortable with holding debt.The Federal Reserve said Monday that total consumer borrowing rose $19.3 billion in September to $3.7 trillion outstanding. Consumer debt has climbed at an annual pace of 6.3 percent, slightly below the growth rates seen in 2014 and 2015.Revolving credit, which covers credit cards, posted an annual gain of 5.2 percent to $978.8 billion. The nonrevolving category, which makes up the bulk of consumer debt, has risen 6.7 percent over the past year to $2.7 trillion.Roughly 70 percent of U.S. economic activity comes from consumers, so the increase in borrowing suggests that spending will keep aiding growth.The economy expanded at an annual pace of 2.9 percent during the third quarter, its healthiest growth rate in two years. The troubled export sector recovered and companies started to restock their shelves in anticipation of greater consumer demand.Much of the optimism has come from consistently solid hiring.Employers added 161,000 jobs in October, a steady pace that contributed to average hourly earnings accelerating 2.8 percent in the past year. The unemployment rate ticked down to 4.9 percent.
Tesla to end free charging stationsDETROIT — Electric carmaker Tesla Motors has decided to stop offering unlimited free use of its 734 fast-charging stations worldwide.Tesla Motors Inc. says cars ordered after Jan. 1 will get roughly 1,000 miles worth of credits each year for use at the Supercharger stations. But after the credits are used, owners will have to pay fees. Vehicles ordered or sold on or before Jan. 1 would still get unlimited free charging.The move means that those who buy Tesla’s Model 3, which is due to go on sale next year, won’t get unlimited free charging.
