WASHINGTON—Total consumer credit growth slowed in June to an increase of 3.1%.
NAFCU Chief Economist and Vice President of Research Curt Long said banks overall tightening of credit card lending standards during the second quarter, as reported in the latest Senior Loan Officer Opinion Survey, may have contributed to the slowdown.
Non-revolving credit, which is mostly motor vehicle and education loans, rose 4.4%, while revolving credit, which is primarily credit cards, decreased 0.2%. "Non-revolving credit growth remained solid despite rising interest rates," Long said in a NAFCU Macro Data Flash report.
Total consumer credit saw a monthly increase of 7.5% in May and a 3.2% increase in April (all seasonally adjusted annual rates).
Total consumer credit for credit unions increased 1.7% in June, compared to a 0.4% increase for banks and a 0.4% decrease for financial companies. In the second quarter, total consumer credit at credit unions rose 4.7%, while banks and financial companies increased 1.9% and 0.1%, respectively, said Long.
Credit unions' share of the total consumer credit market edged up to 11.4% in June, while banks had 41.4% and financial companies held 13.7% of the market.