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Feds: CU Consumer Credit Climbs by $3B in August
Thursday, October 8, 2015 6:45 AM

Consumer credit extended by credit unions reached $330.2 billion in August, a $3 billion increase over the prior month, according to numbers released Wednesday by the Federal Reserve.

The $3 billion jump marks a deceleration, however, as consumer credit climbed by $4.5 billion in July. Among all holders, consumer credit advanced by $16 billion, or a 5.6 percent increase, which is a slight deceleration from the $18.9 billion increase the previous month.

Revolving credit, or credit card use, jumped by more than $1 billion in August at the nation’s credit unions, a step up compared with the prior two months of minimal or no gains.

For all major holders, revolving credit increased by nearly $10 billion.

Nonrevolving credit, which reflects big-ticket purchases like education and autos, edged higher by $1.7 billion at credit unions, a considerable slowdown from the prior month, which posted a $4.3 billion increase.

“Interest rates are incredibly low,” said Thomas McCartin, Moody’s analyst ( Oct. 7). “Job gains and increasing home prices are boosting wealth. Although consumers are not buying up homes, they are buying vehicles at a robust pace as they take advantage of cheap financing.”