WASHINGTON—Total consumer credit rose 7.7% in October.
The revolving credit segment (primarily credit cards) posted strong gains that were supported by "robust retail sales and looser lending standards for credit cards," said NAFCU Chief Economist and Vice President of Research Curt Long.
As CUToday.info earlier reported here, the rise in consumer credit is clearly reflected in CU numbers during October.
Non-revolving credit (primarily auto and education loans) rose 6.7%, while revolving credit increased 10.7%. From a year ago, total consumer credit was up 4.7%. Non-revolving credit increased 5.4%, while revolving credit increased 2.8% from the prior year.
"The non-revolving sector continued to post gains," Long said in a NAFCU Macro Data Flash report. "However, growth of auto loans is expected to slow, in part due to rising borrowing costs. Overall, the outlook for consumer credit remains stable in light of a strong labor market and elevated consumer confidence."
CU Share Grows
Total consumer credit increased 3.5% in September and 7.1% in August (all seasonally adjusted annual rates). Total consumer credit for credit unions increased 1.5% in October from the previous month, compared to a 0.7% increase for banks and a 0.2% increase for financial companies. In the third quarter, total consumer credit at credit unions rose 3.7%, while banks saw a 1.2% increase and financial companies had 0.5% growth, Long noted.
"Credit unions now own 11.7% of the market, up from 11% a year ago," Long added. "Meanwhile, financial companies' market share fell from 14.3% to 13.5% over that period, while banks' share fell from 41.5% to 41.3%."