US consumer borrowing slows down

Consumer spending is the biggest driver of the US economy

US consumers borrowed less money than expected in February after January's huge credit-based shopping spree, according to a Federal Reserve report.

Consumer credit - loans to individuals that aren't mortgages - rose by $3.3bn, well down on January's jump of $6.14bn.

Outstanding consumer credit in the US now stands at $2.164 trillion.

Analysts say people have been borrowing less on credit cards and taking out loans on the equity value of their homes - a cheaper form of credit.

Forecasters had been expecting a $3.5bn rise in February consumer credit.

Consumer spending growth is also slowing, and rose by just 0.1% in February, according to the latest Commerce Department figures.

Retailers have also been reporting slower sales as rising interest rates, higher petrol prices and the cold weather have conspired to make consumers tighten their purse strings.