Consumer borrowing rises in April

Consumers boosted their borrowing in April on a jump in auto and student loans, a positive sign for the economic expansion.

Overall credit rose by $26.8 billion up from a $19.5 billion gain in March, the Federal Reserve said on Friday.

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Revolving lending, which includes credit card use, increased $8.8 billion in April following a $2.2 billion increase in March.

Meanwhile, non-revolving credit, which includes student and auto loans, rose by $18 billion after a $17.3 billion increase the previous month.

Job gains could fuel more spending, which represents 70 percent of economic activity, and that could help the economy grow at a faster pace. 

Employers added 217,000 jobs in May after a 282,000 gain in April, the Labor Department said earlier Friday.

Payrolls are now averaging about 200,000 a month, a good sign for future growth.

The economy contracted at a 1 percent annual rate in the first quarter but economists estimate it could pick up pace and reach as high as 4 percent in the April-June period, economists forecast.