US Consumer debt dropped for the fifth straight time in June, signifying Americans continued to save in June.

Federal Reserve data revealed on Friday that in June, total seasonally adjusted consumer debt dropped $10.3 billion, or at annual rate of 4.9% to $2.503 trillion from $2.513 trillion in the previous month.

It may be noted here that Wall Street analysts had forecast a drop of $4.1 billion in consumer credit in June.

Revolving credit that includes the use of credit-card fell at 6.8% rate to settle at $917 billion.

Non revolving credit that includes, automobile and mobile home loans dropped by 3.8% in June to settle at $1.586 trillion.

Consumers are saving more to balance their loss during recession.

Despite optimistic job report and signs of economic recovery, a huge drop in borrowing is indicating towards weak economy at a time when economists are suggesting more spending to recover the economy.