CU consumer credit continues steady pace of growth in Sept.
WASHINGTON (11/9/15)--Consumer credit at credit unions nationwide advanced by $3.2 billion in September, nearly matching the pace of the prior month’s growth of $3 billion.
Overall, consumer credit advanced 10% during the month, or by $28.9 billion, which was vastly higher than analyst expectations for the month.
“Consumer credit took off at a rapid pace in September,” said Thomas McCartin, Moody’s analyst (Economy.com Nov. 6).
Nonrevolving credit, which reflects financing for large purchases such as education and automobiles, drove the entirety of the $3.2 billion gain, while revolving credit, tied to credit card use, remained steady at $47.5 billion.
This matched the national trends, as nonrevolving balances jumped $22.2 billion overall in the United States while revolving balances climbed $6.7 billion.
“The nonrevolving component posted its fastest growth of the year,” McCartin said. “The upbeat September report followed disappointing August and July data. As a result, growth in the third quarter was slower than the previous quarter, yet at 7.5% it was above average over the last several years.”
On an annualized basis, revolving credit balances overall rose $14.9 billion in the third quarter, a deceleration compared with the second quarter but above the average for the last five years.
Nonrevolving credit balances accelerated to $49.5 billion on an annualized basis for the quarter. Nonrevolving balances have not fallen since September 2011.