By Vicki Needham - 06/06/14 04:50 PM EDT
Consumers boosted their borrowing in April on a jump in auto and student loans, a positive sign for the economic expansion.
Overall credit rose by $26.8 billion up from a $19.5 billion gain in March, the Federal Reserve said on Friday.
Meanwhile, non-revolving credit, which includes student and auto loans, rose by $18 billion after a $17.3 billion increase the previous month.
Job gains could fuel more spending, which represents 70 percent of economic activity, and that could help the economy grow at a faster pace.
Employers added 217,000 jobs in May after a 282,000 gain in April, the Labor Department said earlier Friday.
Payrolls are now averaging about 200,000 a month, a good sign for future growth.
The economy contracted at a 1 percent annual rate in the first quarter but economists estimate it could pick up pace and reach as high as 4 percent in the April-June period, economists forecast.