Instead of saving their money for a rainy day, consumers are borrowing at new highs, according to the latest data released by the Federal Reserve this week that highlights consumer borrowing trends in the month of February.
The data indicates that consumer borrowing soared $16.5 billion, which is an increase from $13.5 billion in January. This is the biggest one-month increase since Feb. 2013.
Credit card debt declined $2.4 billion, but it was negated by the $18.9 billion increase in borrowing on auto and student loans.
Economic analysts say these figures are positive for the economy because this shows consumers are confident enough to take out loans that they feel they can pay back. Consumer spending accounts for nearly three-quarters of the United States economy.