U.S. consumer credit increased in February at a more moderate pace

U.S. consumer borrowing grew in February at a more moderate pace, held back by the smallest increase in credit-card balances in nearly two years.

Total credit increased $15.3 billion after an upwardly revised January gain of $19.5 billion, Federal Reserve data showed Friday.

The figure, which isn’t adjusted for inflation, compared with the median estimate of an $18 billion increase in a Bloomberg survey of economists.

Nonrevolving credit, such as loans for school tuition and vehicle purchases, climbed $10.3 billion after smaller advances in the prior two months.

Revolving credit outstanding, which includes credit cards, increased $5 billion, the smallest gain since April 2021.

While the data precede the collapse of Silicon Valley Bank, the figures offer some insight into the state of consumer borrowing before any additional tightening in lending conditions in the wake of latest banking turmoil.

Tighter Fed policy had already pushed up rates on credit cards and big-ticket items such as cars, making for a bigger pinch on household finances that may feed into a further moderation of spending.

Other data point to a slowing in the year-over-year growth in loans by both big and small banks to consumers in recent months.

Still, many Americans are leaning on credit cards to keep up with rising prices.

A Census Bureau survey in early March showed about a third of Americans said they used credit cards or loans to meet their spending needs.