Consumer Credit Growth Slows in February; Credit Cards Make Gains

The Federal Reserve said Friday that consumer credit expanded by $2.97 billion in February, a 1.5% gain.  But that figure marks the slowest growth for overall consumer credit since October of last year.

The numbers were also much lower than analysts’ expectations.  Economists polled by MarketWatch were expecting an increase of around $7.3 billion for the month.

Credit cards, however, did make a comeback.  After revolving credit debt had contracted over December and January, consumers increased plastic usage by $2.49 billion in February, a 3.4% gain.

It was non-revolving credit – such as auto loans – that came in weak.  That type of debt increased only 0.4%, or $478 million, in February after a $5.38 billion increase in January.

Total consumer debt outstanding was $2.41 trillion at the end of February, according to the report.