March 10, 2014

Consumer credit at CUs increased in January

March 11, 2014 – Total consumer credit for credit unions increased 0.8 percent in January from the previous month as banks and financial companies logged decreases of 1.1 percent and 0.6 percent, respectively, according to NAFCU Senior Economist Curt Long.

Credit unions' share of the total consumer credit market was 8.6 percent in January, while banks had 40.4 percent and financial companies had 21.7 percent of the market, Long said in a NAFCU Macro Data Flash report analyzing data from the Federal Reserve.

Total consumer credit increased by an annualized, seasonally adjusted 5.3 percent in January, after a monthly increase of 6.2 percent in December and a 3 percent increase in November.

Non-revolving credit, which is mostly motor vehicle and education loans, increased at an annual rate of 7.4 percent, while revolving credit, which is primarily credit cards, decreased 0.4 percent in January.

"Non-revolving credit remained solid as consumers took advantage of low interest rates to purchase vehicles and as young adults pursued higher education," Long said. "Non-revolving credit is expected to continue to drive overall consumer credit growth."