Newsroom

Total consumer credit increased 2.8 percent in January – its slowest pace since December 2015 – but NAFCU Chief Economist and Director of Research Curt Long said Wednesday that the credit card spending outlook is still positive.

Non-revolving credit – mostly vehicle and education loans – increased 5.5 percent, while revolving credit – mostly credit card loans – decreased 4.6 percent.

"This was the first decline for [revolving credit] since last February and was the biggest drop since December 2012," Long wrote in a NAFCU Macro Data Flash. "Non-revolving credit growth remained solid at 5.5 percent. Despite the recent slowdown, the outlook for credit card spending remains positive in light of a strong labor market and rising consumer confidence."

For credit unions, total consumer credit increased 1.1 percent in January, compared to a 1.4 percent decline for banks and a 0.1 decline for financial companies. Total consumer credit for credit unions increased 2.3 percent during the fourth quarter of 2016, compared to 3.8 percent for banks and a decrease of 0.9 percent for financial companies.

Credit unions' portfolio of consumer credit increased 11.7 percent from last year and credit unions now own 10.2 percent of the market, up from 9.8 percent a year ago.