Consumer Credit Inches Only Slightly Higher

Consumer spending was soft in February and part of the reason was reluctance to run up credit cards. Revolving credit inched only $0.1 billion higher in February for the lowest result in 4-1/2 years. Nonrevolving credit, where student loans and vehicle financing are tracked, did rise $10.5 billion in the month which, however, is soft for this reading. Together they make for a $10.6 rise in total consumer credit which is well under Econoday's low estimate. These results point to a cautious consumer and hint at trouble for the consumer's contribution to first-quarter GDP.