WASHINGTON (July 8, 2009)--Consumers trimmed borrowing in May for the fourth straight month as the recession took another bite out of investments and drove unemployment higher.

The Federal Reserve said Wednesday consumer credit fell at an annual rate of 1.5 percent, or by $3.2 billion, from April.

Economists expected a deeper cut of $9.5 billion, but the new figures still mark the latest move by consumers to curb borrowing, pay down debt and strengthen household budgets.

Revised data show consumers ratcheted back borrowing at a 7.8 percent pace in April, or by $16.5 billion, which was a bigger cut than first reported and the largest in dollar terms on records dating to 1943.

The $15.6 billion drop in March was slightly less than previously reported, but the second largest tally ever.