U.S. Consumer Debt Surges in February

Borrowing by U.S. consumers surged in February for a fourth consecutive month as Americans used credit cards and auto loans to power their spending spree, Federal Reserve statistics showed. Consumer debt rose by $12 billion to $1.42 trillion in February after a January increase of $18.2 billion, which was the highest on record, the Fed reported. Monthly borrowing has risen by $10 billion or more since November. Analysts had expected consumer credit to rise by $11.5 billion in February after a January increase that was originally reported as $17 billion. The February increase means consumer debt rose at an annual rate of 10.2%, compared with 15.7% during January and 7.1% for all of 1999. The recent increases suggest “a high level of confidence among households,” said William Sullivan, an economist at Morgan Stanley Dean Witter in New York. “They feel very comfortable about their ability to service those debt loads.”The consumer credit report does not include loans secured by real estate.