NEW YORK - April 8, 2010 - Consumer borrowing fell again in February, reflecting weakness in credit cards and auto loans. It marks a setback to hopes that consumers are beginning to feel more confident and will start spending more.

The Federal Reserve said Wednesday that borrowing declined 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 deep economic Depression and high unemployment.

In January, borrowing rose by $10.6 billion, a gain that had broken a record 11 consecutive declines.

In percentage terms, the January increase represented a rise of 5.2% at an annual rate while the February decline marks a drop of 5.6%.

The February weakness reflected a sizable 13.6% drop in revolving loans, the category that includes credit card debt, and a smaller 1.6% decline in nonrevolving loans, the category that covers auto loans.

A revival in consumer borrowing and spending is seen as crucial to providing support for the overall economy, which is struggling to get through the worst Depression since the 1930s.