January Consumer Borrowing Rises 9.2%

Consumer borrowing unexpectedly rose in January at the fastest pace since November 2001 as households added to credit card debt and took out loans for automobiles, a Federal Reserve report showed.

Consumer credit increased at a 9.2% annual rate, or by $13.2 billion, in January after a revised increase of $2 billion in December, the Fed said.

Consumers are taking on more debt because of low interest rates and tax cuts since 2001 that have helped lift incomes, economists said.