WASHINGTON—Total consumer credit rose 6.5% in October – the fastest growth pace seen since last November.
NAFCU Chief Economist and Vice President of Research Curt Long said in a NAFCU Macro Data Flash report Friday that this growth was led by revolving credit.
Revolving credit, which is primarily credit cards, rose 9.9% during October.
"Non-revolving credit also had strong growth during October as hurricane-related replacement purchases boosted vehicle sales," Long said. Non-revolving credit, which is mostly motor vehicle and education loans, increased 5.3% during the month.
Total consumer credit for credit unions rose 0.8% in October from the previous month, compared to a 1.5% increase for banks and a 2.7% decrease for financial companies. In the third quarter, total consumer credit at credit unions rose 3.2%, while banks increased 1.8% and financial companies decreased 0.5%, Long said.
"Credit unions' portfolio of consumer credit was up 10.9% over the past year," Long said. "Credit unions now own 11.1% of the market, which is up from 10.5% a year ago."
Banks' market share was 41.3% in October, unchanged from 12 months ago; financial companies' share fell from 15.4% to 13.9%. Total consumer credit saw a monthly increase of 6.1% in September and a 3.7% increase in August (all seasonally adjusted annual rates), Long noted.