U.S. consumer borrowing rose more than forecast in March

U.S. consumer credit climbed in March by more than forecast, highlighting an increased willingness to borrow as economic activity resumes.

Total credit rose $25.8 billion from the prior month after a $26.1 billion gain in February, Federal Reserve figures showed Friday. On an annualized basis, borrowing rose 7.4% in March. Economists in a Bloomberg survey had called for an $20 billion gain.

Revolving credit, which includes credit cards, rose $6.4 billion after an $8 billion increase. Non-revolving credit, which includes auto and school loans, jumped $19.4 billion, the most since June. Demand for cars has been strong, but limited by supply constraints due to a global semiconductor shortage.

The broad-based borrowing increases suggest consumers are growing more confident as government stimulus checks circulate, vaccinations become more widespread and states ease or lift restrictions all together.