Consumer borrowing grows
Federal Reserve says January credit grew by $6.9 billion, about in line with estimates.
NEW YORK (CNNMoney.com) -- Consumers increased their borrowing by $6.9 billion in January, just about in line with expectations, the Federal Reserve said Friday.
"With other sources of income slowing down, consumers are shifting a greater bulk of their spending on to credit cards," said Andrew Gledhill, an economist with Moody's Economy.com
The Fed said the total amount of credit outstanding climbed 3.3% to $2.525 trillion from a revised $2.518 trillion in December.
Total credit was expected to rise by $7 billion, according to a consensus of economists surveyed by Briefing.com.
The report showed that revolving credit - the category that includes credit card debt - rose at an annual rate of 7% in January, up from 2.8% in December of 2007.
The type of debt that involves fixed payments, which includes auto loans, rose 1.1%, unchanged from the previous month.
Higher gasoline prices contributed to the credit boost, because most consumers purchase gas at the pump with their credit cards, said Gledhill.
The Federal Reserve's measurement of consumer credit does not include mortgages, home equity loans, or other debt backed by real estate. 
