Business news from the Fredericksburg region.
HONEST–1 AUTO CARE TO OPEN LOCATION IN SPOTSYLVANIA
Honest–1 Auto Care, a national full-service auto care company, will open its second Virginia franchise Tuesday in Spotsylvania County.
Franchisee Miguel Cruz will open the shop at 10350 Courthouse Road in what was formerly a Hollywood Video.
Cruz, 59, said he has worked on cars throughout his life, and opening his own automotive business seemed like a logical step after retiring from civil service. He grew up in Puerto Rico and spent 16 years in the U.S. Army.
Cruz also owns an Honest–1 site in Alexandria and will open a franchise in Ashburn in September. He said he is considered adding another shop in Spotsylvania or Stafford County.
The Spotsylvania location will be run by his son, Mike Cruz, and begin with eight employees.
US CONSUMER SPENDING SURGE IS PROMISING SIGN
WASHINGTON—Consumers increased their borrowing by a sizable amount in April, with growth in credit card debt rising at the fastest pace in more than 12 years.
Overall credit expanded by $26.8 billion during the month, up from a gain of $19.5 billion in March, the Federal Reserve said Friday. The strong climb is an encouraging sign for the economy, suggesting that consumers are confident enough to boost purchases by borrowing.
The result was fueled by autos and student loans, which rose by $18 billion, and credit card debt, which was up $8.8 billion. The upswing in credit card debt represented a 12.3 percent gain, the fastest pace since November 2001 when consumers were being urged to spend to bolster the economy following the Sept. 11 terrorist attacks.
Increased household borrowing can fuel stronger consumer spending, which accounts for 70 percent of economic activity in the U.S. The rise in credit card spending was surprising, since it plunged during the recession.