Credit card use drives CU consumer credit gains in May
WASHINGTON (7/9/15)--In line with national trends, credit union consumer credit climbed in May, but slowed compared with April’s gains, according to the Federal Reserve.
However, after several consecutive months of stagnant growth, revolving credit at credit unions--tied to credit card use--jumped by $600 million to $45.9 billion (Ecomony.com July 8).
Nonrevolving credit at credit unions, associated with financing for big-ticket items such as automobiles and education, rose by $2.7 billion after jumping $4.5 billion the previous month.
For all holders, overall consumer credit balances jumped by $16.1 billion in May, down from $21.4 billion the prior month.
Revolving credit balances climbed only $1.6 billion during the month after an $8.5 billion increase the previous month, while nonrevolving credit accelerated to $14.5 billion in May after a $12.85 billion increase in April.
Additional numbers from the report:
Year-earlier growth in total balances fell to 6.51% from 6.64% in May, behind the 6.6% average year-over-year pace from 2014;
Year-earlier growth in revolving credit balances slipped to 3.19% from 3.27% in May, but still sits above the 2.6% average annual growth seen in 2014; and
- Year-earlier growth in nonrevolving credit balances outpaced total balances, with a 7.75% increase, but that falls below the 8.16% annual growth seen in the first quarter.