Consumers in the U.S. increased their non-mortgage debts in the for the fourth month in a row to open the year, indicating that improving economic conditions are partly being driven by renewed borrowing, according to The Wall Street Journal. On Tuesday, the Federal Reserve reported that consumer credit excluding real estate loans grew at an annual pace of 2.5% in January to reach $2.4 trillion. The gain was led by a 7% increase in non-revolving credit, although credit card debt reached the lowest level in six years.

Revolving consumer credit, which primarily comprises credit card debt, was down 6.4% to $795.5 billion from a peak $974 billion in August 2008. Economists are pointing to large purchases as a sign of strengthening consumer spending, with credit card borrowing projected to increase in the coming months. A separate report from Fitch Ratings and the American Bankruptcy Institute forecast that personal bankruptcy filings are likely to fall for the first time since 2006, falling to 1.5 million in 2011 from 1.53 million the year before.

Click here to read the story on consumer borrowing from The Wall Street Journal.

Click here for coverage of bankruptcies from Financial Times.