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October 08, 2015
Consumer credit growth slows, but optimism remains
For the month of August, total consumer credit increased an annualized seasonally adjusted 5.6 percent, a decline from 6.6 percent in July and 9.7 percent in June. Nevertheless, NAFCU Chief Economist and Director of Research Curt Long said that was not a cause for concern.
"With the labor market approaching full employment and interest rates still at historic lows, consumer credit should continue to fare well," Long said in a NAFCU Macro Data Flash report.
Non-revolving credit, which is mostly motor vehicle and education loans, increased at an annual rate of 5.7 percent. That was the lowest rate in over three years, but Long said that any deceleration in growth is likely concentrated in student loans since August vehicle sales were strong.
Long added that revolving credit, which is primarily credit cards, expanded at a 5.3 percent pace in August as consumers continued to spend their savings at the pump.
Total consumer credit for credit unions increased 0.9 percent during that month. Credit unions expanded their total consumer credit outstanding 4.9 percent in the second quarter, outperforming both banks and financial companies, said after analyzing data published by the Federal Reserve.
"With the labor market approaching full employment and interest rates still at historic lows, consumer credit should continue to fare well," Long said in a NAFCU Macro Data Flash report.
Non-revolving credit, which is mostly motor vehicle and education loans, increased at an annual rate of 5.7 percent. That was the lowest rate in over three years, but Long said that any deceleration in growth is likely concentrated in student loans since August vehicle sales were strong.
Long added that revolving credit, which is primarily credit cards, expanded at a 5.3 percent pace in August as consumers continued to spend their savings at the pump.
Total consumer credit for credit unions increased 0.9 percent during that month. Credit unions expanded their total consumer credit outstanding 4.9 percent in the second quarter, outperforming both banks and financial companies, said after analyzing data published by the Federal Reserve.
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