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Consumer debt rose by $21.4 billion in March from February, the Federal Reserve said Monday. It was the seventh straight monthly increase and the largest since November 2001. A measure of auto and student loans increased by $16.2 billion. A separate gauge of mostly credit card debt rose $5.2 billion after declining in January and February. Total borrowing rose to a seasonally adjusted $2.54 trillion. That is slightly below the record high of $2.58 trillion for July 2008, eight months after the recession began. After hitting that peak, consumers sharply reduced borrowing for two straight years. They slowly began taking on more debt in fall 2010, and in recent months have stepped up the rate of borrowing. More borrowing is generally viewed as a healthy sign for the economy. It suggests consumers are gaining confidence and becoming more comfortable taking on debt. Analysts said a major factor in the recent increase in borrowing is stronger hiring since fall. But another reason is that more people are returning to school. Student loan debt jumped in March. Paul Edelstein, director of financial economics at IHS Global Insight, said that could reflect an effort to borrow before a scheduled rate increase in July. Cooper Howes, an economist at Barclays Capital, said it could also mean that some people who cannot find work are returning to school. “We expect that student loan growth will continue to push the level of consumer credit higher,” Mr. Howes said. The economy grew at an annual rate of 2.2 percent in the first quarter.
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