ARLINGTON, Va.—Total consumer credit rose 4.7% in September (seasonally-adjusted, annualized), up 0.4% versus a year ago, a “promising” sign of recovery, according to NAFCU Chief Economist and Vice President of Research Curt Long.
"Revolving credit expanded for the first time since February, a good sign that consumers are more confident in the economy," said Long. "Non-revolving credit continues its unstoppable growth with interest rates at historic lows.
"Supply-side challenges will remain as long as lenders keep standards tighter in this economic climate – the latest (Federal Reserve) Senior Loan Officer Survey revealed that 71.7% of banks have tightened standards for credit cards," continued Long. "NAFCU expects further credit expansion through the end of the year, so long as the growth in viral cases does not breach hospitalization capacity."
Total consumer credit for credit unions rose 2.1% in September from the previous month, above the overall growth of 0.6%. However, total consumer credit at banks declined 3.6%.
From a year prior, credit unions' share of the market grew 0.2% percentage points to 11.9%. Meanwhile, banks' share fell 1.8% to 39.9% and financial companies' share rose to 13.2%, Long said.