(Bloomberg) — U.S. consumer borrowing surged in February by the most on record, reflecting outsized increases in both credit-card balances and non-revolving loans.
Total credit jumped $41.8 billion from the prior month after a revised $8.9 billion gain in January, Federal Reserve figures showed Thursday. The increase exceeded all estimates in a Bloomberg survey of economists. On an annualized basis, borrowing rose 11.3%.
Revolving credit outstanding, which includes credit cards, rose $18 billion. Non-revolving credit, which includes auto and school loans, increased $23.8 billion. Both advances were among the biggest on record. On an unadjusted basis, revolving credit fell as is typical for the month, though to a lesser extent than in most years. That could indicate that consumers in February paid down less of the debt they racked up during the holiday-shopping season.
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Consumer Borrowing in U.S. Surges by a Record $41.8 Billion