The Federal Reserve has announced borrowing by American consumers grew for the first time in a year in January.
According to the central bank, consumer credit rose 2.4% or $5 billion (£3.3 billion) compared with the previous month to a total of $2.45 trillion.
It was the first increase after a record 11 months of declines and represented the largest rise since July 2008.
The increase was attributed to a demand for car loans but according to analysts at Briefing.com: “The increase in credit may not be due to more expenditures but from car loans becoming more expensive.”
In the meantime, credit card borrowing, which has now fallen for the 16th consecutive month, fell 2.3% or $1.7 billion.
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