WASHINGTON—While some analysts say consumer spending remains sluggish, borrowing by U.S. consumers ballooned in March at the fastest pace in 10 years, with credit cards leading the way.
The Federal Reserve reported that outstanding consumer credit, rose by a seasonally adjusted $29.67 billion in March from the prior month. The 10.0% seasonally adjusted annual growth rate was the fastest growth pace since November 2001, according to the Fed.
The Fed further reported that credit increased at a seasonally adjusted annual rate of 6.4% in Q1, vs. 6.1% in the first quarter of 2015. It rose at a 4.78% pace in February.
In addition, revolving credit outstanding, which is primarily made up of credit cards, increased at a 14.16% annual pace in March, the fastest pace since July 2000. Revolving credit rose at a revised rate of 3.72% in February.
Non-revolving credit outstanding, including student and auto loans, increased at a 8.50% annual pace in March compared with February's revised 5.17% growth rate.