WASHINGTON — U.S. consumers reduced their borrowing for the seventh straight month in August, as households worked to pay off debt and banks reduced credit card limits.

Americans are saving more and borrowing less as widespread job losses, stagnant wages and dwindling home values have spurred a move to greater frugality. While that's a positive trend in the long run, economists say, it can weaken the fledgling recovery as consumer spending powers about 70 percent of the economy.

The Federal Reserve said yesterday that total consumer debt outstanding fell in August by $12 billion, a 5.8 percent annual rate.

IPOS MAKE RETURN AFTER CREDIT HIATUS

NEW YORK — There is growing evidence that the market for initial public offerings is rebounding after essentially disappearing at the height of the credit crisis as two new issues raised a combined $10 billion yesterday.

However, analysts say the market's re-emergence isn't open to every company, and that only the strong can successfully launch stock sales right now.

Both of yesterday's IPOs are well-known and established companies in their industries. Verisk Analytics Inc. is the largest provider of data to the property and casualty insurance sector. Spain's Banco Santander offered shares in its Brazilian unit, which is Brazil's third-largest private sector bank behind Itau-Unibanco and Bradesco.

The initial stock offering of Banco Santander Brasil SA fetched $8.1 billion, while Verisk garnered $1.9 billion from investors.

ALCOA POSTS PROFIT AS DEMAND RISES

PITTSBURGH — Painful cost-cutting and rising sales to automakers and other big manufacturers helped the nation's largest aluminum producer return to profitability for the first time in nine months.

Alcoa Inc. also forecast an 11 percent increase in worldwide aluminum demand for the rest of the year. The lightweight metal is used in everything from airplanes to cars to houses.

Even though Alcoa's third-quarter profit fell 71 percent from a year earlier, the results were a relief after three straight quarterly losses.

The Pittsburgh-based company said rising demand, particularly from automakers, lifted its revenue compared with the prior three months.