10/07/2015 15:01 EDT | Updated 10/07/2016 01:12 EDT

US consumer credit his new record of $3.47 trillion in August, led by auto and student debt

WASHINGTON — U.S. consumer borrowing advanced at a solid pace in August, as Americans took out more auto and student loans.

The Federal Reserve says consumer borrowing rose by $16 billion in August, pushing the total to a fresh record of $3.47 trillion.

The August advance was slightly below the July gain of $18.9 billion. In June, credit had soared by $27.2 billion, the largest increase since November 2001.

Borrowing for car and student loans rose $12 billion in August. Borrowing in the category that covers credit cards rose by $4 billion.

Economists are forecasting that consumer spending, which accounts for 70 per cent of economic activity, will remain strong in the coming months, supported by continued willingness of households to take on more debt.

Martin Crutsinger, The Associated Press