Mike: talk about "strong economy" <<U.S. consumer credit growth strong again in February
Wednesday April 7, 3:21 pm Eastern Time
WASHINGTON, April 7 (Reuters) - U.S. consumers kept up a booming pace of buying on credit during February, the Federal Reserve said on Wednesday, in the latest sign that a spending boom carried solidly into 1999.
Consumer installment credit expanded by $8.7 billion in February, an annual rate of 7.9 percent, after a revised $15.3 billion jump in January, or a 14.1 percent rate. Previously, the Fed said January consumer credit had grown by $14.7 billion.
The February pickup was far above Wall Street analysts' forecasts for a $5.6 billion increase. Strong consumer spending fueled a big 6 percent annual rate of increase in gross domestic product in the final quarter last year and there is little sign that shoppers are slowing down.
Auto loans grew by $5.2 billion -- a 13.7 percent annual rate -- in February, after a $7.1 billion, or annualized 19 percent, surge in January.
Revolving, or credit-card debt, increased by $2.3 billion, a 4.8 percent rate, in February -- less than half January's rise of $6.2 billion, a 13.2 percent annual rate.
Other credit, a catch-all category that includes consumer bank loans like those for mobile homes and to pay for education but not real estate mortgages, grew by $1.2 billion, a 5.1 percent rate, in February after a $2-billion or annualized 8.2 percent rise in January.
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