Here’s What’s Driving Those Robust Consumer Credit Numbers

WASHINGTON—Total consumer credit rose at a seasonally adjusted annual rate of 6.6% in September – the fastest pace since last November, noted NAFCU Chief Economist and Vice President of Research Curt Long.
Consumer credit saw an increase of 4.2% in August and 5.7% in July (all seasonally adjusted annual rates). From a year ago, total consumer credit was up 5.6%, Long said.
Non-revolving credit, which is mostly motor vehicle and education loans, increased 6.3% in September, while revolving credit, which is primarily credit cards, rose 7.7%. Non-revolving credit and revolving credit both increased 5.6% from the prior year.
"Growth was led by revolving credit, which exceeded $1 trillion for the first time since January 2009," said Long in a NAFCU Macro Data Flash report. "Non-revolving credit also had strong growth during the month as vehicle sales surged after Hurricane Harvey."
Total consumer credit for credit unions rose 1.1% in September from the previous month, compared to a 0.5% increase for banks and a 0.1% decrease for financial companies. In the third quarter, total consumer credit at credit unions rose 3.2%, while banks increased 2% and financial companies decreased 0.5%, the report indicated.
Credit unions' share of the total consumer credit market remained at 11% in September, while banks had 40.9% and financial companies held 14.3% of the market. Credit unions' portfolio of consumer credit was up 12.1% over the past year, Long said.