U.S. consumer credit climbed in March by more than forecast, highlighting an increased willingness to borrow as economic activity resumes.
Total credit rose $25.8 billion from the prior month after a $26.1 billion gain in February, Federal Reserve figures showed Friday. On an annualized basis, borrowing rose 7.4% in March. Economists in a Bloomberg survey had called for an $20 billion gain.
Revolving credit, which includes credit cards, rose $6.4 billion after an $8 billion increase. Non-revolving credit, which includes auto and school loans, jumped $19.4 billion, the most since June. Demand for cars has been strong, but limited by supply constraints due to a global semiconductor shortage.
The broad-based borrowing increases suggest consumers are growing more confident as government stimulus checks circulate, vaccinations become more widespread and states ease or lift restrictions all together.
