Consumers increased borrowing in July but are still holding back

Total consumer borrowing rose in July, as Americans increased purchases of new vehicles and borrowed for college tuition for the second month in a row, the Fed's latest credit report shows.

By the numbers: Outstanding consumer credit increased by $12.3 billion in July from the month before, a 3.6% increase. Credit rose at a revised 3.3% annual rate in June.

• The use of credit has risen for the past two months after declining from March through May, and sinking by 6.6% in the second quarter, including a 30.8% fall in revolving credit, which follows credit cards and similar consumer credit lines.

Yes, but: Revolving credit continued to fall, down 0.4% in July after a 2.2% decline in June and a 27.9% decline in May, as consumers continued to hold back on credit spending.