WASHINGTON (10/8/14)--Consumer credit at credit unions advanced by $5.3 billion in August, an acceleration in rising outstanding credit at credit unions from July, which saw a $4.2 billion increase, the Federal Reserve reported Tuesday.
Nationally, however, consumer credit decelerated, climbing by $13.5 billion in August compared with a $21.6 billion jump in July. The 5% increase is the smallest since last November (MarketWatch Oct. 7).
Nonrevolving loans drove the gains in consumer credit outstanding for credit unions, climbing $4.4 billion to $249.3 billion for the month. Total U.S. nonrevolving credit rose $13.7 billion, the Federal Reserve reported.
As nonrevolving loans pertain to large purchases such as homes and automobiles, given the Federal Reserve data, it's no surprise that a report released this week by Equifax showed that new credit and the number of new loans originated for vehicle purchases have reached all-time highs.
The total number of new auto loans issued through June was 12.5 million, an increase of 4.9% year-over-year, according to Equifax's numbers. The total balance of new automobile loans rose 6.9% annually to $254.2 billion, which is nearly half of the total new non-mortgage credit originated.
"Auto sales continue to soar, crossing the 17.4 million mark on an annualized basis for new cars and light trucks in August," said Amy Crews Cutts, senior vice president and chief economist at Equifax. "The abundance of high-quality vehicles for sale, the attractive financing options available and the ever-increasing age of cars on the road today have created an environment that makes it easy for consumers to say 'yes' when it comes to purchasing a new or used car."
Revolving loans--generally tied to credit cards--at credit unions increased to $44.5 billion in August from $43.7 billion. This also outpaces July's $400 million jump.
Nationwide, revolving loans declined $208 million.
To see the full report, use the link below.