http://www.federalreserve.gov/releases/g19/current/default.htm

The Federal Reserve reported November 7, 2006 that consumer borrowing was at a 14-year low, thanks to a huge drop in auto loans as consumers shied away from new vehicle purchases in the wake of record gasoline prices earlier this year.

Consumer borrowing fell at an annual rate of 0.6 percent in September, compared with a 4.6 percent rate of increase in August, according to the report. Borrowing fell by $1.2 billion in September, marking the biggest drop since a $1.78 billion decrease in April 1992.

The decline in consumer borrowing marked the first time it fell since March.

The Federal Reserve reported that consumer borrowing for auto loans declined at an annual rate of 3.2 percent in September, compared to an increase of 3.5 percent the previous month. September loans in that category dropped by $4.05 billion, the largest fall since the $4.81 billion decline in October 1991.

In contrast, the Fed said that credit card borrowing rose 4.0 percent in September, while strong, it was below the previous month's gain of 6.7 percent.

This year, consumers watched gasoline prices soar to over $3.00 per gallon at a time when autodealers' showrooms were bulging with gas-guzzling SUVs. That put a quick end to new-car sales nationwide.  But as gasoline prices eased and more economical vehicle models were introduced, the housing market began to collapse, which added to consumer fears.

U.S. automakers, Ford and General Motors, have been closing plants and reorganizing their operations in an attempt to save their businesses market share from foreign automakers like Toyota, who today announced a near 34% in earnings and said it was on track to surpass General Motors next year as the world's largest automaker.