August 24, 2014

Consumer credit at CUs increased 1.8% in June

Aug. 11, 2014 – Total consumer credit for credit unions increased 1.8 percent for the month of June, surpassing banks' increase of 0.7 percent and the 0.1 percent decline reported for financial companies, according to data from the Federal Reserve analyzed by NAFCU's Doug Christman.

In the second quarter, total consumer credit at credit unions increased 5.3 percent, while banks and financial companies had increases of 2.8 percent and 0.3 percent, respectively.

Credit unions' consumer credit market share has been steadily increasing, reaching 9 percent in June. That's up from 8.5 percent in June of last year, Christman noted in a NAFCU Macro Data Flash report.

Total consumer credit increased by an annualized, seasonally adjusted 6.5 percent in June, after a monthly increase of 7.4 percent in May and a 9.7 percent increase in April.

Non-revolving credit, which is mostly motor vehicle and education loans, increased at an annual rate of 8.4 percent, while revolving credit, which is primarily credit cards, increased 1.4 percent in June.

"Non-revolving credit remained solid as consumers took advantage of low-interest rates to purchase vehicles and as young adults pursued higher education," Christman said. "Strong vehicle sales over the last five months continues to support gains in non-revolving credit."