Growth in borrowing by consumers slows
WASHINGTON -- Consumer borrowing in March grew at the slowest pace in nine months as Americans pulled back on credit card use.
Borrowing increased by $10.3 billion in March, the Federal Reserve said Tuesday. That was the smallest monthly advance since an $8.8 billion rise last June. Borrowing increased $15.5 billion in February.
The slowdown reflected a $2.2 billion drop in the category that includes credit cards. That offset part of a $12.5 billion rise in borrowing in the category that covers auto loans and student loans.
Consumer credit is closely watched for clues it can provide of the willingness of households to increase their borrowing to support consumer spending, which accounts for 70% of economic activity.
Even with the March slowdown, consumer debt rose to a record $4.05 trillion in March.
The overall economy, as measured by gross domestic product, grew at a 3.2 percent annual rate in the January-March quarter.
The Fed's monthly consumer borrowing report does not cover mortgages or other loans secured by real estate, such as home equity loans.
-- The Associated Press
Beyond Meat shares soaring since debut
Beyond Meat Inc. shares extended their winning streak on Tuesday, rising as much as 14.3 percent during the day's trading.
The company's 5.9 percent gain at the close of trading Tuesday builds on Monday's 12 percent climb. Shares surged 163 percent in the company's trading debut Thursday, the strongest first day for an initial public offering since at least 2008.
While only two analysts have rated Beyond Meat so far, both have given it the equivalent of a buy, according to data compiled by Bloomberg.
On Tuesday, the private wealth management firm Bernstein gave the company an outperform rating, saying that if meat substitutes follow the same growth path as plant-based beverages, then the total addressable market could swell to about $40.5 billion in the U.S. over the coming decade.
The company, a maker of plant-based foods designed to resemble meat protein, faces some competition, including from Tyson Foods Inc.
-- Bloomberg News
Arkansas Index dips 5.92, ends at 419.85
The Arkansas Index, a price-weighted index that tracks the largest public companies based in the state, closed at 419.85 Tuesday, down 5.92.
"It was a rough day for U.S. stocks on Tuesday as investors wrestle with news of escalating trade tensions between the United States and China that may trigger global growth fears," said Chris Harkins, managing director at Raymond James & Associates in Little Rock.
The index was developed by Bloomberg News and the Democrat-Gazette with a base value of 100 as of Dec. 30, 1997.
Business on 05/08/2019