Credit

U.S. consumer credit rose at an annual rate of 3.2 percent in January, up from a 2.5 percent gain in the previous month, the Federal Reserve. The January rise came as consumers borrowing in auto and other types of nonrevolving loans surged 4.4 percent at an annual rate, up sharply from the 2.9 percent increase in the previous month.

Revolving loans, a category that includes credit card debt, were up 1.1 percent at an annual rate, compared with a gain of 1.9 percent in December. The 3.2 percent rise in borrowing pushed total consumer credit up to an all-time high of 2.41 trillion U.S. dollars at an annual rate in January. In the final quarter of 2006, U.S. consumer credit rose at an annual rate of 4.4 percent, down from a 5.5 percent pace in the third quarter, according to revised data.

For all of 2006, consumers borrowing grew by 4.8 percent, slightly higher than the increase of 4.2 percent registered in 2005, revised data also showed. Consumer credit reflects consumer spending, which accounts for two thirds of overall economic activity and is a major force pushing the U.S. economy to grow. The Federal Reserve measure of consumer borrowing does not include mortgages or other loans secured by real estate.