The growth in consumer debt slowed in July to its slowest pace since last December, figures from the Federal Reserve have revealed.

Consumer credit rose at an annual rate of 2.1 per cent, down from 5.1 per cent in June. Total consumer debt in the US now totals $2.587 trillion.

This figure excludes mortgages and other loans secured on real estate.

Before the Fed's announcement, economists had predicted an increase of $8.5 billion in consumer credit during July. However, the real increase was just $4.6 billion.

Reports suggest the slowdown is down to a restriction on credit by banks and a reduction in spending by households.

"Consumers faced with rising unemployment have backed away from spending," Chris Rupkey, chief financial economist at the Bank of Tokyo-Mitsubishi UFJ, told Bloomberg.

"On top of this, banks are pulling credit lines and refusing to increase credit limits for even well-heeled credit card customers," he added.

Figures released by the Commerce Department last month revealed that consumer spending rose by 0.2 per cent in July, compared to 0.6 per cent in June.

-----------------------------------------------------------------------