WASHINGTON - Americans borrowed briskly in February, especially to finance cars, vacations and other big-ticket items. <br>
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Consumer credit rose by a seasonally adjusted $7.1 billion, or at a 5.1 percent annual rate, the Federal Reserve reported Friday. <br>
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The advance - in line with many economists' expectations - offered another encouraging sign consumers will continue to spend and help along the current economic recovery. <br>
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Demand for nonrevolving credit, including new cars and vacations, grew by $6.4 billion in February, or at an annual rate of 7.9 percent. That followed a smaller $5.7 billion increase, or a 7 percent growth rate, in January. <br>
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For revolving credit, demand edged up by $674 million, or at an annual rate of 1.2 percent in February. That compared with an increase of $1.4 billion and a growth rate of 2.4 percent in January. <br>
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In January, consumer credit also rose at a 5.1 percent rate, according to revised figures. That was a big slowdown compared with the 9.3 percent pace the Fed reported a month ago. <br>
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Unlike past recessions, consumers continued to spend throughout this one, meaning they probably will not have a lot of pent-up demand to spend lavishly as the economy recovers from a recession that began in March 2001. Consumer spending accounts for two-thirds of all economic activity. <br>
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Still economists are optimistic that consumers - whose confidence in the economy and in the jobs market surged in March - will continue to spend in the months ahead, but probably at a modest pace. <br>
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The Fed's report on consumers includes credit card debt and loans for autos, boats and mobile homes. It does not include loans backed by real estate, such as home mortgages or increasingly popular home equity loans.
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