Consumers increased their borrowing in February on autos and student loans by the largest amount in a year. But for a second-straight month, they cut back on their credit-card use.
Consumer borrowing climbed $16.5 billion in February, up from a $13.5 billion gain in January, the Federal Reserve reported Monday.
The category that includes credit cards fell $2.4 billion after a $241 million drop in January. But this decline was offset by an $18.9 billion increase in borrowing in the category that covers autos and student loans, the biggest one-month gain since February 2013.
The overall increase in consumer debt pushed total borrowing to a record $3.13 trillion.
Gains in borrowing are seen as an encouraging sign that people are more confident and willing to take on debt.
Increased household borrowing can fuel higher consumer spending, which accounts for 70 percent of economic activity.
The February decline in credit-card borrowing marked the third decrease in the past four months. That continues a trend evident since the 2007-2009 Great Recession.
Borrowing on credit cards plunged during that recession as consumers tried to lower their debt during a period when millions of people were losing their jobs and many people still working were worried about the threat of layoffs.