Big-ticket purchases fuel April consumer credit growth at CUs
WASHINGTON (6/8/15)--Consumer credit at U.S. credit unions surged by $4.1 billion in April, far outgaining the $500 million increase seen between February and March, the Federal Reserve reported Friday.
The jump was driven by nonrevolving credit--generally used to fund big-ticket items such as automobiles and education--which rose by $4 billion to $267 billion outstanding.
Revolving credit, tied to credit card use, edged up slightly to $45.3 billion from $45.2 billion.
“Confidence and sentiment are up,” said Thomas McCartin, Moody’s analyst (Economy.com June 5). “The April jobs report beat expectations and included significant revisions to the two prior months resulting in 32,000 more jobs added between March and April. We think the weak first quarter growth was temporary, and we are tracking second quarter growth at 2.8%.”
For all major credit holders, consumer credit rose $20.6 billion in April, a slight deceleration from the prior month’s gains.
Revolving credit nationwide climbed by $8.6 billion to $899.5 billion outstanding, while nonrevolving credit advanced by $12 billion.
Nonrevolving credit balances have not fallen since August 2011, and sit 7.84% higher on a year-over-year basis.
Revolving credit nationwide climbed 3.28% on an annual basis in April.