U.S. consumer credit jumps by most in 4 years

U.S. consumer borrowing jumped in June by the most in four years, led by a gain in non-revolving debt, including student loans. Credit increased by $15.5 billion, three times as much as projected and the biggest gain since August 2007, after a $5.08 billion advance in May that was little changed from the previous estimate, the Federal Reserve said on Saturday in Washington. Economists forecast a $5 billion rise, according to the median estimate in a Bloomberg News survey. Unemployment hovering around 9 percent may be spurring Americans to stay in school longer or seek more training in the hope of landing a job. At the same time, elevated gasoline and food costs may be straining household budgets, prompting consumers to turn to their credit cards to purchase necessities. Spain’s central bank says GDP up 0.2 percent in Q2 Spain’s central bank says the country’s economy rose 0.2 percent in the second quarter, down modestly from the 0.3 percent growth recorded in the previous three month period. The figures Friday confirm that Spain’s recovery from a near two-year recession remains sluggish at best at a time when financial markets are worried that the country is going to have real difficulties dealing with its debts and unemployment remains near 21 percent. The bank’s figures are an estimate. Official numbers from the National Statistics Institute are issued a week or so later and the two sets tend to agree. The government is forecasting growth of 1.3 percent this year, though the central bank and others say that prediction is too optimistic. Russian stocks bounce back after foreign markets dive Russian markets ended Friday’s trading only slightly below the previous day’s close as jitters caused by a slump in the West fizzled out and the authorities and experts claimed there was no reason for panic. The Moscow Interbank Currency Exchange was almost flat by 17:30 Moscow time, down just 0.74 percent to 1,608.72 after a four percent fall at the opening of trade. The RTS index fell 1.64 percent to 1,825.33. International stock markets fell to their lowest since late 2010 on Thursday and extended losses on Friday. More serious falls are feared should governments fail to stabilize the eurozone’s debt crisis soon and prevent the U.S. economy from sliding back into recession.