WASHINGTON (10/8/15)--Consumer credit extended by credit unions reached $330.2 billion in August, a $3 billion increase over the prior month, according to numbers released Wednesday by the Federal Reserve.
The $3 billion jump marks a deceleration, however, as consumer credit climbed by $4.5 billion in July. Among all holders, consumer credit advanced by $16 billion, or a 5.6% increase, which is a slight deceleration from the $18.9 billion increase the previous month.
Revolving credit, or credit card use, jumped by more than $1 billion in August at the nation’s credit unions, a step up compared with the prior two months of minimal or no gains.
For all major holders, revolving credit increased by nearly $10 billion.
“Consumer credit decelerated slightly from the previous month,” said Thomas McCartin, Moody’s analyst (Economy.com Oct. 7). “The nonrevolving component posted its slowest growth of the year. However, year-over-year growth in total consumer credit has held steadily near 7%.”
Nonrevolving credit, which reflects big-ticket purchases such as education and automobiles, edged higher by $1.7 billion at credit unions, a considerable slowdown from the prior month, which posted a $4.3 billion increase.
“Interest rates are incredibly low,” McCartin said. “Job gains and increasing home prices are boosting wealth. Although consumers are not buying up homes, they are buying vehicles at a robust pace as they take advantage of cheap financing.”