U.S. consumer credit falls $14.80 billion in Sept

WASHINGTON (Reuters) - Total U.S. consumer credit dropped by a bigger-than-expected $14.80 billion in September, Federal Reserve data showed on Friday, indicating households prefer to reduce debt and are still reluctant to spend.

September consumer credit outstanding fell at a 7.19 percent annual rate to $2.46 trillion. August's figures were revised to show a $9.86 billion drop, previously reported as a $12 billion fall.

Analysts polled by Reuters had forecast consumer credit dropping by $10.0 billion in September. Consumer credit has now declined for eight consecutive months, the longest downward streak since the series started in 1943, according to the Fed.

While the economy resumed growing again in the third quarter, possibly ending the most brutal recession in 70 years, there are concerns that sluggish consumer spending and a weak labor market could hobble the recovery.

The pace of job losses has slowed markedly from early this year, but the unemployment rate jumped a 26-1/2-year high of 10.2 percent in October.

Nonrevolving credit, which includes closed-end loans for big-ticket items such as cars, boats, college education and holidays, fell $4.87 billion, or at a 3.72 percent annual rate, to $1.57 trillion.

Revolving credit, made up of credit and charge cards, dropped $9.93 billion, or at a 13.26 percent rate, to $889 billion, the data showed.

(Reporting by Lucia Mutikani; Editing by James Dalgleish)