Consumer borrowing unexpectedly rises in March, only the second increase in last 14 months

Consumer borrowing posts unexpected rise in March

WASHINGTON — Consumer borrowing posted an unexpected increase in March, only the second gain in the last 14 months. It could be a sign that households are feeling more confident about boosting spending, a key development needed to support a sustained economic recovery.

The Federal Reserve reported that consumer borrowing rose by $1.95 billion in March, better than the $3.85 billion drop that economists had expected.

Consumer credit was also up in January but other than those two gains, it has been falling steadily since February of last year as households have cut back on their borrowing to repair their battered balance sheets.