Consumer credit rose 6.5 percent in October, the fastest year-over-year growth pace seen since last November, according to the Federal Reserve.
The growth was led by revolving credit, which rose 9.9 percent during October. Revolving credit is primarily from credit cards.
Non-revolving credit, which is mostly motor vehicle and education loans, also saw growth in October. It increased 5.3 percent for the month, due in part to hurricane-related replacement purchases, National Association of Federally Insured Credit Unions Chief Economist and Vice President of Research Curt Long said in an analysis of the report, published in the NAFCU Macro Data Flash.
Consumer credit rose 0.8 percent for credit in October over the previous month, while jumping 1.5 percent for banks. It fell 2.7 percent decrease for financial companies.
In the third quarter, consumer credit increased 3.2 percent for credit unions, outpacing banks, which gained 1.8 percent, and financial companies, which decreased 0.5 percent.
“Credit unions’ portfolio of consumer credit was up 10.9 percent over the past year,” Long said. “Credit unions now own 11.1 percent of the market, which is up from 10.5 percent a year ago.”
Banks’ market share remained at 41.3 percent, unchanged from 12 months ago. The market share for financial companies dropped to 13.9 percent from 15.4 percent.
October marks the third straight month of gains in consumer credit. It was up 6.1 percent in September and 3.7 percent in August.