Consumer borrowing falls $11.5 billion in February

[centsgirl]

Consumer borrowing fell yet again in February, reflecting weakness in credit cards and auto loans. Analysts said the sharp reduction showed that the weak economy is still making consumers hesitant to take on more debt.

The Federal Reserve said on Wednesday that borrowing went down 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 economic recession and very high unemployment.

Analysts are saying consumer borrowing is being held back by the fears about job security with unemployment still near 10 percent and a move by banks to tighten credit standards following the severe financial crisis of the past two years.