ARLINGTON, Va.—Total consumer credit rose 8.8% in November – the fastest pace since September 2015 – and was boosted mainly by strong revolving credit.
"Growth was led by revolving credit, which rose to an all-time high and surpassed the previous record set in 2008," said NAFCU Chief Economist and Vice President of Research Curt Long in a Macro Data Flash report. "Non-revolving credit also had strong growth during the month and reported its largest gains since last October. Consumer credit growth should remain strong due to a solidly performing labor market and high levels of consumer confidence."
Revolving credit, which is primarily credit cards, rose 13.3% in November. Non-revolving credit, which is mostly vehicle and education loans, increased 7.2% during the month.
Total consumer credit at credit unions rose 0.6% in November from the previous month, compared to a 1.7% increase for banks and no growth for financial companies. In the third quarter, total consumer credit rose 3.2% at credit unions, increased 1.8% at banks and decreased 0.5% at financial companies, Long said.
"Credit unions' portfolio of consumer credit was up 11.1% 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 41.7% in November, up slightly from 12 months ago; financial companies' share fell from 15.2% to 13.8%. Total consumer credit saw a monthly increase of 6.5% in October and a 5.7% increase in September (all seasonally adjusted annual rates), Long noted.