U.S. consumer borrowing rose in December for a third consecutive month, led by the first increase in credit-card charges in more than two years as holiday sales improved. Credit rose by $6.1 billion to $2.41 trillion after increasing a revised $2.02 billion in November, according to Federal Reserve data issued today in Washington. Economists projected a $2.4 billion increase, according to the median forecast in a Bloomberg News survey. Borrowing remains below the peak of $2.58 trillion in July 2008. For all of 2010, credit contracted. A thawing of credit makes it more likely that consumer spending, which accounts for about 70 percent of the economy, will keep increasing after climbing last quarter at the fastest pace in four years. Gap Inc. and General Motors Co. are among companies that beat sales estimates at the start of this year as customers took advantage of post-holiday discounts. "People are starting to get out, little by little, and spend," said Yelena Shulyatyeva, an economist at BNP Paribas in New York. "This is in line with consumer spending, and the overall economy, picking up."
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