WASHINGTON—Total consumer credit for credit unions rose 0.2% in August from the previous month, according to a NAFCU Macro Data Flash report.
But the association’s Curt Long expects consumer credit growth to pick up in the coming months in the wake of storm recovery efforts.
"Consumer credit growth decelerated somewhat in August as non-revolving credit growth slowed," said Long, NAFCU's vice president of research and chief economist. "However, revolving credit grew by the fastest pace since May. While consumer confidence was negatively affected by the recent hurricanes and dipped slightly in September, consumer credit growth will likely be boosted by the replacement needs in the next few months."
Total consumer credit rose 4.2% in August; it grew 5.7% in July. Total consumer credit for banks increased 1% from July and decreased 0.2% for financial companies. Non-revolving credit – primarily vehicle and education loans – increased at an annual rate of 5.5% in August, while revolving credit – mostly credit cards – rose 5.4%, NAFCU noted.
Credit unions' portfolio of consumer credit increased 11.6% over the past year, giving credit unions 11% of the market. Banks' market share fell to 41%, while financial companies' share dropped to 14.4%, NAFCU said.