WASHINGTON — Consumer borrowing plunged more than expected in February as Americans cut back their use of credit cards by a record amount.

The Federal Reserve said yesterday that consumer borrowing dropped at an annual rate of $7.48 billion in February, or 3.5 percent, from January. Wall Street economists expected borrowing to slide by only $1 billion, according to a survey by Thomson Reuters.

The decline was led by a record drop in borrowing on credit cards, which fell at an annual rate of $7.8 billion, or 9.7 percent. That is the sharpest drop in dollar terms since federal records began in 1968, and the steepest percentage fall since 1978.

"Consumers don't want to borrow as much, they want to build up their savings," said Zach Pandl, an economist at Nomura Securities International. "People are adjusting to new spending habits."

Besides credit cards, the Fed's report also covers auto and other personal loans. It doesn't include mortgages or other real-estate related debt.

Auto and other loans in February rose at a slight $313 million annual rate, or 0.23 percent, after increasing by 4.6 percent in January.

Consumer spending accounts for about 70 percent of U.S. economic activity.