Credit Union Consumer Credit Outpaces Banks Again
November was the second consecutive month that consumer credit grew faster at credit unions than at banks and finance companies, according to Federal Reserve data released Tuesday.
The Fed reported that total credit union consumer credit was up 1.5 percent from the previous month on a non-seasonally adjusted basis, while banks reported a 0.7 percent increase and financial companies reported a 0.2 percent uptick.
Consumer credit, a measurement that does not include real estate loans, expanded 7 percent in November on a seasonally adjusted, annualized basis. NAFCU Research Associate Doug Christman noted that consumer credit has increased in 10 of the 11 months that have been measured for 2012. “November’s increase followed a 6.2 percent increase in October and a 5.3 percent increase in September,” he said.
Non-revolving credit, which grew at an annual rate of 9.6 percent, continued to drive growth as consumers took advantage of low interest rates to purchase new vehicles and as young adults pursue higher education in a weak labor market, Christman noted. Revolving credit, which only increased by 1.1 percent, “was likely impacted by declining gasoline prices,” he said.continue reading »