Consumer borrowing fell $11.5B in February

WASHINGTON (AP) — Consumer borrowing fell again in February, reflecting weakness in credit cards and auto loans. It marks a setback to hopes that consumers are beginning to feel more confident and will start spending more.

The Federal Reserve said today that borrowing declined by $11.5 billion in February, surprisingly weaker than the small $500 million gain that economists had expected.

The February decline was the 12th decrease in the past 13 months as consumers slash borrowing in the face of a deep economic recession and high unemployment.

In January, borrowing rose by $10.6 billion, a gain that had broken a record 11 consecutive declines.

In percentage terms, the January increase represented a rise of 5.2 percent at an annual rate while the February decline marks a drop of 5.6 percent.