WASHINGTON (9/9/14)--In line with national trends, consumer credit at credit unions rose substantially in July, climbing $5.4 billion overall, according to the Federal Reserve's monthly consumer credit report, released Monday.
Largely driven by auto and student loans, nonrevolving credit, which encompasses big ticket items such as cars and homes, increased by $5 billion, while revolving credit, or credit cards, rose by about $400 million.
"Consumers appear to be growing less reluctant to take on credit card debt as confidence rallies with a healing job market," said Andrew Davis, Moody's analyst (Economy.com Sept. 8). "After seesawing through much of the recovery, revolving loan balances have now advanced for five consecutive months, the longest streak since prior to the Great Recession."
Overall at U.S. financial institutions, consumer credit balances jumped by $26 billion, noticeably higher than the $18.8 billion climb in June.
Revolving credit balances rose by $5.4 billion in July nationally, well above the $3.2 billion average gain over the past three months, according to Moody's.
Nonrevolving credit, which hasn't fallen since August 2011, swelled by $20.6 billion. Year-over-year, nonrevolving consumer credit was 8.5% higher in July.
"The release of pent-up vehicle demand is benefiting nonrevolving balance growth," Davis said. "Vehicle sales have held above 16 million units SAAR since April and hit their fastest pace since early 2006 in August."