While the Federal Reserve released a report on Friday showing a continued increase in U.S. consumer credit in the month of February, the increase in credit fell short of economist estimates.
The report showed that consumer credit increased by $8.7 billion in February following a revised increase of $18.6 billion in January. Economists had expected credit to increase by about $12.0 billion compared to the $17.8 billion increase originally reported for the previous month.
The smaller than expected increase in consumer credit came as a drop in revolving credit partly offset an increase in non-revolving credit.
Non-revolving credit such as student loans and car loans rose by $11 billion, while revolving credit, which largely reflects credit card debt, fell by $2.2 billion.
The Fed said consumer credit increased at an annual rate of 4.2 percent in February, as a 7.7 percent increase in non-revolving credit more than offset a 3.3 percent drop in revolving credit.
by RTT Staff Writer
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