Getting a boost: American consumers boosted their borrowing in September, a potential sign that recent job growth and wage gains have left them slightly more comfortable with holding debt. As The Associated Press reports, the Federal Reserve says that total consumer borrowing rose $19.3 billion in September to $3.7 trillion outstanding. Consumer debt has climbed at an annual pace of 6.3%, slightly below the growth rates seen in 2014 and 2015. Roughly 70% of U.S. economic activity comes from consumers, so the increase in borrowing suggests that spending will keep aiding growth. The economy expanded at an annual pace of 2.9% during the third quarter, its healthiest growth rate in two years. Read the full story.
On the ballot: About 2 million workers in four states voting Tuesday would be affected by an increase in their pay floors, USA Today reports. Voters will consider ballot initiatives to raise the minimum wage, threatening to widen the disparity between the growing number of jurisdictions that have lifted their pay floors and the rest of the country. In Arizona, Colorado and Maine, state hourly minimums would rise to $12 by 2020 from a range of $7.50 to $8.31. In Washington, the pay floor would climb from $9.47 to $13.50 over the next four years. Polls in the four states generally show solid majorities supporting the measures. A sweep would widen the gap between the 29 states—with 60% of the U.S. workforce—that now have base wages higher than the federal government’s $7.25 an hour, and the 21 states that remain at the U.S. minimum, according to the National Employment Law Project, a worker advocacy group. Read the full story.
Trying something new: Samsung Electronics plans to equip its next Galaxy S smartphones with a Siri-like digital assistant, seeking to make a comeback after the global debacle that precipitated the death of its flawed Note 7 lineup, Reuters reports. Samsung says the Galaxy S8 slated for next year will come with AI-enabled features “significantly differentiated” from those in the market, such as Apple Inc.’s Siri or Google. Those services now offer up potentially useful information from the weather to flight times based on user activity. The flagship Galaxy S line will prove crucial to salvaging Samsung’s reputation in the wake of the fiasco surrounding a Note 7 device prone to bursting into flame. The recall and eventual cessation of the line is estimated to cost upward of $6 billion and pushed profits at its mobile division to a record low in the September quarter. Read the full story.
