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Personal debt taken on by Americans to buy goods and services rose less than anticipated in August (Bloomberg).

What’s going on: U.S. consumer borrowing grew by $8.9 billion in August, according to Federal Reserve data out Monday, “a slower pace than a month earlier, restrained by the largest drop in credit-card balances since March 2021.”

• The median estimate for August in a Bloomberg economist survey had been a $12 billion increase.

The details: Unpaid debt on revolving lines of credit, such as credit cards, decreased almost $1.4 billion.

• However, non-revolving credit, which includes car loans and school tuition, rose $10.3 billion.

What it means: “The decline in revolving debt outstanding suggests consumers are focused on reducing credit-card balances that are carrying much higher interest rates than they were years ago.”

• Although the Fed cut interest rates for the first time in four years last month, “it will take time that to filter through into cheaper financing costs for consumers.”