Consumer Credit Rises Nearly 7%, But ‘Significant’ Slowdown Apparent

ARLINGTON, Va.—Total consumer credit rose 6.8% in July (seasonally-adjusted, annualized) and is up 5.2% versus a year ago. Despite a slowdown since the start of 2019, NAFCU Chief Economist and Vice President of Research Curt Long said consumer credit remains up.

LongCurt

Curt Long, NAFCU

"Consumer credit held at a sturdy level in July due to a surge in credit card balances," Long said in a NAFCU Macro Data Flash report. "The revolving segment has been choppy lately, but is up by an annualized 6.7% since March. Non-revolving growth has been steadier as auto and school loan demand remain resilient a decade into the recovery."

Total consumer credit for credit unions grew 0.4% in July from the previous month, compared to a 0.9% increase for banks and a 0.4% increase for financial companies.

‘Significant Slowdown’

Long added that while credit unions' portfolio of consumer is up 6.8% from last year, it is "a significant slowdown since the start of the year, when growth for credit unions topped 12%."

Banks saw a 5.4% increase and financial companies saw a 0.8% increase in their total consumer credit from the year prior.

Credit unions now own 11.7% of the market, up 0.2% from a year ago. Meanwhile, financial companies' market share fell from 13.7% to 13.2% over that period, while banks' share increased from 41.6% to 41.7%, Long said.

Section: Standard
Word Count: 323
Copyright Holder: CUToday.info
Copyright Year: 2019
Is Based On:
URL: http://www.cutoday.info/Fresh-Today/Consumer-Credit-Rises-Nearly-7-But-Significant-Slowdown-Apparent