WASHINGTON—Total consumer credit expanded at a slower pace in January, rising by 4.3% after a 6% monthly increase in December.
NAFCU Chief Economist and Vice President of Research Curt Long, in a Macro Data Flash report, noted that revolving credit saw its slowest increase in three years.
“Consumer credit expanded by a slower pace in January. The revolving segment reported its smallest gains since 2015," Long said. "However, credit card spending is expected to improve as both after-tax income and consumer confidence rise."
Revolving credit, which is primarily credit cards, rose just 0.8% in January. Long said non-revolving credit, which is mostly vehicle and education loans, "maintained a steady pace during the month," increasing 5.6%.
Total consumer credit at credit unions rose 1% in January from the previous month, compared to a 1.1% decrease for banks and a 0.5% decrease for financial companies.
"Credit unions' portfolio of consumer credit was up 11.6% from last year," Long said. "Credit unions now own 11.1% of the market, which is up from 10.5% a year ago."
Banks' market share was 41.5% in January, up slightly from 12 months ago; financial companies' share fell from 14.9% to 13.9%, Long noted.