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US consumer credit jumps up

By IANS,

Washington: US consumer credit grew at an annual rate of 7.8 percent in February, indicating expanding consumer spending and ongoing economic recovery, the US Federal Reserve reported.

Total consumer borrowing rose from a revised $2.780 trillion in January to a record $2.799 trillion in February, the central bank said in a report Friday.

Revolving debt, which includes credit cards, edged up at an annual rate of 0.8 percent to $848 billion in February, reported Xinhua.

In February, borrowing in the non-revolving category that includes auto and students loans, surged at an annual rate of 10.9 percent to $1.951 trillion.

Consumer spending, which accounts for about 70 percent of the overall US economic activity, is seen as a major engine driving the US economic growth. An increase in consumer credit indicates that consumers have boosted their spending.