Newsroom

Total consumer credit rose 6.5 percent in October – the fastest growth pace seen since last November. NAFCU Chief Economist and Vice President of Research Curt Long said in a NAFCU Macro Data Flash report Friday that this growth was led by revolving credit.

Revolving credit, which is primarily credit cards, rose 9.9 percent during October.

"Non-revolving credit also had strong growth during October as hurricane-related replacement purchases boosted vehicle sales," Long said. Non-revolving credit, which is mostly motor vehicle and education loans, increased 5.3 percent during the month.

Total consumer credit for credit unions rose 0.8 percent in October from the previous month, compared to a 1.5 percent increase for banks and a 2.7 percent decrease for financial companies. In the third quarter, total consumer credit at credit unions rose 3.2 percent, while banks increased 1.8 percent and financial companies decreased 0.5 percent.

"Credit unions' portfolio of consumer credit was up 10.9 percent over the past year," Long said. "Credit unions now own 11.1 percent of the market, which is up from 10.5 percent a year ago."

Banks' market share was 41.3 percent in October, unchanged from 12 months ago; financial companies' share fell from 15.4 percent to 13.9 percent.

Total consumer credit saw a monthly increase of 6.1 percent in September and a 3.7 percent increase in August (all seasonally adjusted annual rates).