WASHINGTON (2/10/14)--Consumer credit issued by credit unions rose on a non-seasonally adjusted basis by $1.8 billion in December, as revolving credit balances drove an overall increase in U.S. consumer credit, according to Federal Reserve data released Friday.
U.S. consumer credit for the month increased by $18.8 billion to $3.1 trillion, a seasonally adjusted rate of 7.3%, the most in nearly a year due to a rise in credit card usage (Reuters Feb. 7).
Revolving credit balances edged $5 billion higher, after rising a $465 million in November--the largest one-month increase in revolving loan balances since May (Economy.com Feb. 7). Consumers may be growing less hesitant in taking on additional credit as the job market improves, Economy.com said.
Year-earlier growth in revolving credit balances accelerated to 1.9%, ahead of the fourth quarter average of 1.3% and the 1% average over 2013.
Non-revolving balances increased $13.8 billion from last month and have not fallen since August 2011. The December increase is above the $13.2 billion average gain over the past three months.
Auto loans increased $12.6 billion to $1.2 trillion in the fourth quarter. Student loans outstanding rose by $7 billion to $873 billion in the fourth quarter.
Year-earlier growth in non-revolving credit balances continues to outpace that of total balances, running at 8% in December, slightly below the 8.4% pace of 2013.