WASHINGTON – Consumer credit continues to grow, as does the share being captured by credit unions.
Chief Economist and Vice President of Research Curt Long noted the latest numbers are robust.
“On a seasonally-adjusted basis, consumer credit grew at the strongest rate in years once again,” said Long. “Revolving credit grew at its fastest pace in recent history and twice as fast as the previous month. Trends in revolving debt can be difficult to parse; growth may reflect increased spending as consumer confidence is restored, but it may also reflect emergency spending by households still suffering through job loss and nearing the end of enhanced unemployment benefits. Nonrevolving credit growth slowed in June, mostly as a result of lower vehicle sales. NAFCU expects strong gains in consumer credit through the rest of the year, particularly in revolving credit as the job market improves and spending patterns are restored.
“Credit unions' portfolio of consumer credit was up 4.2% from a year earlier, compared to a 4.2% rise across all types of credit holders,” Long continued. “Over the past 12 months, credit unions' share of the market was unchanged at 12.2%. Meanwhile, banks' share fell by 0.2 percentage points to 39.9%, and financial companies' share rose by 0.3 percentage points to 13.4%.”