Consumers in May increased their borrowing, which is a good sign that their confidence in the economy and their own job stability is returning.
Americans’ borrowing picked up by $19.6 billion in May compared with April, the Federal Reserve reports. That’s the biggest increase since May 2012 when it was $19.9 billion, The Associated Press reports.
That’s coupled with sequestration in the federal government pulling down spending. In addition, the federal budget deficit for the current fiscal year dropped to $759 billion.
That’s down more than $200 billion predicted just three months ago. It’s caused by the improving economy as well as the sequestration spending cuts.
Happy days, indeed, appear to be just around the corner.