Consumer Borrowing Rises in February

U.S. consumer debt rose in February at the same pace as a month earlier, a sign borrowing has cooled since the end of last year, a Federal Reserve report showed.

Consumer borrowing rose at 5.1% annual rates in both February and January compared with an 8.5% pace of increase in the fourth quarter of last year.

Borrowing through credit cards and other types of loans increased by $7 billion in February, the Fed said. Credit card debt and other revolving loans rose by half the pace of a month earlier, while borrowing for the purchases of automobiles increased at a faster rate.

Spending on goods other than automobiles slowed in February as some retailers offered fewer discounts. Auto sales increased as General Motors Corp. and other car makers offered rebates or no-interest financing.