Consumer Credit in U.S. Increased $6 Billion on Auto Loans, Card Purchases

[Purveyor]

By Vincent Del Giudice

May 6 (Bloomberg) -- U.S. consumer borrowing rose for a sixth straight month in March, led by a gain in non-revolving credit, which includes auto loans, and a pickup in credit-card use.

The $6 billion increase followed a $7.6 billion rise in February, the Federal Reserve said today in Washington. Economists projected a $5 billion gain in the measure of credit card debt and non-revolving loans for March, according to the median forecast in a Bloomberg News survey.

Payroll gains may be giving Americans the ability to ratchet up their borrowing. Employers last month added more jobs than forecast, indicating the economic expansion is withstanding higher fuel prices.

“Consumers are feeling a little more confident about the economic outlook and their own financial situation,” said Russell Price, senior economist at Ameriprise Financial Inc. in Detroit. “Things will improve incrementally from here. As job growth continues, we should continue to see pretty good consumer spending.”

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