WASHINGTON, Oct. 7 (Xinhua) -- U.S. consumer credit fell by a 5.8 percent annual rate in August to 2.46 trillion dollars, the Federal Reserve reported Wednesday.

    The 12 billion dollar decrease, much worse than the 7.5 billion dollar decline that economists forecast, followed a record cut of 19 billion dollars in July, or a 9.1 percent annualized drop.

    For August, consumer credit in revolving loans, a category that includes primarily credit card debt, plunged by 9.9 percent at an annual rate. Demand for no revolving credit used to finance cars, vacations, education and other things, meanwhile, was down 1.6 percent.

    The strength in consumer borrowing will continue to be weak as job layoffs are rising, according to economists.

    The Labor Department reported last week that the unemployment rate rose to 9.8 percent in September, the highest in 26 years. Many economists believe the rate might hit double digit next year.