By Vicki Needham - 07/09/10 04:29 PM EDT
Consumer borrowing dropped more than $9 billion in May, showing Americans are more focused on getting their finances in order instead of increasing their spending as the economy slowly recovers.
Borrowing fell by $9.1 billion in May, which was more than expected, on top of a revised $14.9 billion drop in April, according to the Federal Reserve. April's first estimate had shown an increase of $995 million.
Decreased borrowing will probably constrict consumer spending, which accounts for 70 percent of the economy.
For nearly the duration of the recession consumer borrowing has dropped for 15 of the past 16 months, as Americans have remained uncertain about the sluggish job market.
Credit card borrowing has dropped for 20 consecutive months, as consumers have aimed to lower their debt levels during the recession.