Wednesday, March 7, 2012

Americans stepped up borrowing in January to buy more cars and attend school, a reflection of their growing confidence in the economy.

The Federal Reserve says consumer borrowing rose by $17.8 billion in January after similar gains in December and November.

Total consumer borrowing has climbed back steadily to a seasonally adjusted $2.5 trillion. That nearly matches the pre-recession borrowing level.

The January gain was driven by $20.7 billion increase in category that mostly measures demand for auto and student loans. It was the biggest increase for that category since November 2001. Borrowing on credit cards fell $2.9 billion in January after four months of gains.