WASHINGTON – Consumer borrowing increased by $5 billion, or 2.4%, in January to a seasonally adjusted $2.456 trillion, the first increase in a year, the Federal Reserve reported today.
Consumer credit had declined for 11 consecutive months through December. The January increase was the largest since July 2008.
Consumer credit in December was revised to a decline of $4.6 billion, or 2.2%, from a $1.8 billion, or 0.8%, decline reported last month.
Economists expected January consumer credit to fall by $3.1 billion, according to the median estimate from Thomson Reuters
Revolving credit fell 2.3% to $864.4 billion.
Nonrevolving credit, which includes loans for automobile, education and vacations, increased 5.0% to $1.592 trillion. It was the largest nonrevolving monthly gain since April 2008.
