CU consumer credit sees Nov. deceleration
WASHINGTON (1/11/16)--While revolving credit issued by credit unions accelerated in November, overall credit union consumer credit levels took a step back during the month.
After a $2.1 billion gain in October, consumer credit climbed only $1.6 billion in the penultimate month of 2015.
Breaking recent trends, revolving credit--tied to credit card use--improved on a monthly basis with a $700 million increase on the heels of a flat month of growth.
On the other hand, nonrevolving credit--reflecting financing for larger purchases such as automobiles--jumped only $900 million in November after a more than $2 billion increase the previous month.
The trends for credit unions mirrored those of all major holders.
“Consumer credit increased again in November, but growth continued to cool,” said Thomas McCartin, Moody’s analyst (Economy.com Jan. 8). “This was the second slowest month of growth in 2015. Revolving credit bounced back from its tepid gains in October, but the nonrevolving segment slowed considerably, posting its slowest month of growth since 2011.”
For all U.S. holders of consumer credit:
Overall balances rose $13.9 billion in November, a pull back from the previous month’s $15.6 billion increase;
Revolving credit balances climbed $5.7 billion during the month after a meager $100 million gain in October; and
- Nonrevolving credit balances increased $8.3 billion in November from the previous month, a 3.9% annualized increase.