Consumer Borrowing for Auto, Student Loans Increases in February
The increase in total borrowing tracked by the Federal Reserve surpassed
economists’ predictions for the month.
Consumer borrowing tracked by the Federal Reserve increased more than
economists’ expectations for the month of February, Bloomberg reports.
Total consumer borrowing increased $17.3 billion in February after a $14.9
billion gain in January, according to the article.
Non-revolving debt, including student and auto loans, increased $14.3 in
February, according to the
Federal Reserve’s monthly consumer credit report. However, it was the
smallest gain in three months, according to Bloomberg.
January’s overall borrowing increases were minimal compared to December
2015, ACA International previously reported.
“Consumers, emboldened by increased hiring and cheap financing rates, are
more willing to borrow for big-ticket purchases such as cars. At the same
time, households have been wary of carrying large and unmanageable
credit-card balance,” Bloomberg reports.
Revolving debt, including credit card purchases, in February increased $3
billion after a $243.7 million decrease in January.
Twenty-eight economists surveyed by Bloomberg predicted a $14.9 billion
increase in total consumer borrowing in February, according to the article.
Their predictions ranged between $5 and $20 billion, according to the