WASHINGTON—Total consumer credit outstanding grew an annualized 5.8% in May, the fastest monthly growth in six months, according to data released by the Federal Reserve.
Non-revolving credit, which is mostly motor vehicle and education loans, increased 4.7%, while revolving credit, which is primarily credit cards, rose 8.7.
"Following a disappointing April, consumer credit expanded at the fastest pace in six months during May," NAFCU Chief Economist and Director of Research Curt Long wrote in a Macro Data Flash. "Revolving credit growth accelerated to a six-month high, while non-revolving credit growth remained solid despite moderating vehicle sales.
"The outlook for consumer lending remains positive in light of a strong labor market and positive consumer confidence," he continued. "However, robust growth is unlikely with auto demand fading and borrowing costs on the rise."
The not seasonally adjusted data show consumer credit outstanding at credit unions rose 0.8%; at banks, 0.9%; and at financial companies, 0.3%. Credit unions' share of the total consumer credit market edged up to 10.6% in May, while banks had 39.7% and financial companies held 17.4% of the market, Long noted.