Strong consumer credit growth in October
Dec. 10, 2013 – Total consumer credit outstanding increased by an annualized 7.1 percent in October and consumer credit growth at credit unions continued to outpace banks, according to a NAFCU Macro Data Flash report.
Credit unions’ share of the total consumer credit market was 8.6 percent in October, while banks had 40.6 percent and financial companies had 22.3 percent of the market, as shown in data published by the Federal Reserve.
“Total consumer credit growth at credit unions was twice that of banks in the third quarter, expanding by 3.4 percent, while banks increased just 1.7 percent and financial companies increased 0.6 percent,” said Curt Long, NAFCU’s senior economist.
Total seasonally adjusted consumer credit saw an increase of 6.4 percent in September and a 6.2 percent increase in August.
Consumer credit data showed strong growth in both revolving and non-revolving credit in October. Non-revolving credit, which is mostly motor vehicle and education loans, increased at an annual rate of 7.5 percent, while revolving credit, which is primarily credit cards, increased 6.1 percent in October. It was the strongest growth in revolving credit since May.
“Non-revolving credit remained solid as consumers took advantage of low-interest rates to purchase vehicles and as young adults pursued higher education,” Long said. “Non-revolving credit is expected to continue to drive overall consumer credit growth.”
NAFCU Macro Data Flash report