CUs’ 2Q consumer credit growth outpaced banks
NAFCU Staff Economist Curt Long
Oct. 8, 2013 – Consumer credit growth at credit unions was double that of banks during the second quarter, according to data from the Federal Reserve – a 3.4 percent increase compared to 1.7 percent.
NAFCU Staff Economist Curt Long analyzed the data in a Macro Data Flash.
“Consumer credit growth at credit unions continued to outpace banks,” Long wrote. “Installment credit increased 1.3 percent from the previous month in August, compared to an increase of 0.9 percent for banks and 0.2 percent for financial companies.”
Long also said that while non-revolving credit went up in August, aided by vehicle purchases and student loans, revolving credit contracted due to consumers paying off credit card balances. “Non-revolving credit is expected to continue to drive overall consumer credit growth,” Long said.
Credit unions’ share of total consumer installment credit in August was 8.6 percent, compared with 40.6 percent at banks and 22.4 percent at financial companies. Consumer installment credit for credit unions went up 1.3 percent in August, compared to 0.9 percent for banks, and 0.2 percent for financial companies. Overall, consumer credit increased by an annualized 5.4 percent during the month.
NAFCU Macro Data Flash