U.S. consumer credit increased at an annual rate of 3 percent in June, a positive sign of consumers' growing confidence in the economy, reported the Federal Reserve on Tuesday.

The U.S. central bank said that total borrowing in June rose to a seasonally adjusted total of 2577.4 billion U.S. dollars from the revised figure of 2570.9 billion dollars in May.

The Fed said that demand for revolving credit, the category that includes credit cards, fell by 5.1 percent in June to 864.6 billion dollars.

The borrowing in the non-revolving category that includes auto loans rose at an annual rate of 7.2 percent to 1712.8 billion dollars.

Consumer spending, which is the main driver for growth, rose by 1.5 percent in the second quarter, a deceleration from a 2.4 percent gain in the first three months. The overall economic growth also slowed to 1.5 percent in the April-June quarter.