U.S. consumers unexpectedly reduced borrowing in October as the economy fell further into recession, the government reported Friday. The Federal Reserve (Fed) said consumer credit fell at a 1.6 percent annual rate in October, compared with a 3.1 percent growth rate recorded in September. October's reversal was the sharpest cutback in borrowing since August. Economists expected consumers to increase borrowing by about $2 billion in October. However, consumer debt fell by $3.5 billion to $2.58 trillion, the central bank said. The Fed's measure of consumer borrowing does not include debt secured by real estate, such as mortgage or home-equity loans.
