U.S. consumer credit increased at an annual rate of 4.2 percent in February, a positive sign of consumers’ growing confidence in the economy, reported the Federal Reserve (Fed) on Friday.
The U.S. central bank said that total borrowing in February rose to a seasonally adjusted total of 2521.8 billion U.S. dollars from the revised figure of 2513.1 billion dollars in January, the sixth monthly increase.
The Fed said that demand for revolving credit, the category that includes credit cards, fell by 3.3 percent in February to 798.6 billion dollars.
In February, the borrowing in the non-revolving category that includes auto loans rose at an annual rate of 7.7 percent to 1723.2 billion dollars.
Consumer spending, which accounts for about 70 percent of the overall economic activity, remains the major driver of the U.S. economy.