WASHINGTON (11/8/13)--Consumers borrowed $13.74 billion more during September, and members also increased their borrowing at credit unions, according to the consumer credit report released Thursday by the Federal Reserve. However, credit card use fell for a fourth consecutive month.
A Reuters poll of economists had expected overall borrowing to increase $12 billion after a revision of August's revised gain of $14.15 billion from the previously reported $13.63 billion increase (Reuters Nov. 7).
Overall U.S. consumer credit rose 5.25%, seasonally adjusted, during third quarter, with a 5.50% increase for the month of September. Outstanding credit totaled $3.051.7 trillion, compared with $3.038 trillion in August, said the Fed's report.
At credit unions, members borrowed $262.5 billion overall, an increase from August's $259.9 billion and from third quarter 2012's total of $236.7 billion.
Revolving credit, which reflects use of credit cards, decreased at an annual 2.25% rate to $846.9 billion in September from $848.9 billion in August. That compares with $845.1 billion in third quarter 2012. The $2.06 billion drop is the fourth consecutive monthly decline, which could help explain the reduced consumer spending during third quarter, said Reuters (Nov. 7).
Bloomberg.com noted a pickup in household wealth from increased property values and stock market gains are contributing to the purchases of big-ticket items such as new cars. However, limited job and income growth are prompting consumers to whittle away at credit card debt (Bloomberg.com Nov. 7).
At credit unions, members stayed steady in their credit card use. Revolving credit in September at credit unions totaled $41.1 billion, the same as in August, but those amounts are higher than the $38.1 billion borrowed in third quarter of 2012, according to the Fed's report.
Nonrevolving credit, which includes auto loans and student loans, rose at an annual rate of 8%, or nearly $16 billion, to $2.205 trillion borrowed in September. That's up from $2.189 trillion in August and from $2.033 trillion in third quarter 2012.
At credit unions, nonrevolving credit rose to $221.4 billion in September, compared with $218.8 billion in August and $198.5 billion in third quarter of last year.
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