WASHINGTON—Total consumer credit rose 6.7% in November, again exceeding expectations. The non-revolving sector (primarily auto and education loans) posted
its largest gains in a year – 7.1% – which partially reflects stronger than expected vehicle sales during the holiday shopping season, noted NAFCU Chief Economist and Vice President of Research Curt Long.
Also seeing robust growth, the revolving credit sector (primarily credit cards) increased 5.5% in November. "However, credit card delinquencies ticked up in the third quarter, which might lead more lenders to tighten their underwriting standards," Long said in a NAFCU Macro Data Flash report.
Total consumer credit saw a monthly increase of 7.6% in October and a 3% increase in September (all seasonally adjusted annual rates).
"Overall, the outlook for consumer credit remains stable in light of a strong labor market and elevated consumer confidence," Long added.
Total consumer credit for credit unions increased 0.7% in November from the previous month, compared to a 1.2% increase for banks and a 0.1% decrease for financial companies. Credit unions' portfolio of consumer credit was up 9.6% from a year earlier.
"Credit unions now own 11.6% of the market, up from 11% a year ago," Long pointed out, as financial companies' market share fell from 14.2 to 13.4% over that period and banks' share fell from 41.8 to 41.6%.