Newsroom

February 08, 2016

Consumer credit at CUs up 1.4%

Total consumer credit for credit unions went up 1.4 percent in December and 2.5 percent during the fourth quarter of 2015, according to a NAFCU Macro Data Flash.

"Consumer credit grew 5.8 percent during the 4th quarter on a seasonally-adjusted, annualized basis, which was slower than the previous two quarters," said NAFCU Chief Economist and Director of Research Curt Long. "However, it is near the average over the last several years. With the labor market approaching full employment and interest rates still at historic lows, consumer credit should continue to fare well."

Credit unions' share of the total consumer credit market was 9.6 percent in December – the same percentage they had in November – compared to banks at 40.6 percent and financial companies at 19.3 percent.

Long analyzed Federal Reserve data and found that non-revolving credit – mostly vehicles and education loans – increased at an annual rate of 7.1 percent in December while revolving credit – mostly credit cards – increased 7.5 percent.