WASHINGTON (5/8/15)--Credit union-issued consumer credit climbed by $400 million to $308.2 billion in March, a deceleration from the prior month’s $3.3 billion gain, according to numbers released by the Federal Reserve Thursday.
Nonrevolving credit, tied to large purchases such as student loans and automobiles, drove the gains, rising to $263 billion from $262.4 billion.
Revolving credit, on the other hand, dropped to $45.2 billion from $45.3 billion during the month for credit unions. Revolving credit is associated with credit card use.
For all major credit holders, consumer credit balances jumped $20.5 billion for the month, after posting a $15 billion increase in February, according to the Federal Reserve.
Nonrevolving credit balances nationally increased by $16.2 billion, and revolving credit climbed by $4.3 billion.
“March’s increase (in credit card use) suggests that consumers are beginning to take advantage of the windfall from the plunge in gas prices,” said Jesse Rogers, Moody’s analyst (Economy.com May 7).
Overall, consumer credit advanced 7.4% on an annualized basis in March, and 5.4% on an annualized basis in the first quarter.
Annually, total balances rose 6.82% for the year ending in March, slightly ahead of the 6.6% year-over-year average seen in 2014.