ECONOMY

Consumer Credit Shrank in August: Consumers cut purchases on credit by $1.29 billion in August, the Federal Reserve said. Loans for new cars plummeted by $1.97 billion in August, an 8.6% annual rate, after dropping in July by $931 million, a 4.1% annual rate. Auto loans have fallen every month this year, and manufacturers of North American-made cars reported that the model year ending in September was the worst since 1983. Credit card buying grew, however, by $1.18 billion after expanding in July by $462 million. This category has not declined since dipping 2.8% last January. Total consumer installment credit has dropped in eight of the past nine months beginning in December.