ARLINGTON, Va.—Total consumer credit rose 4.3% in June (seasonally-adjusted, annualized) and is up 5.2% versus a year ago.
In response to this growth, NAFCU Chief Economist and Vice President of Research Curt Long described it as "solid" despite some weakening.
"The revolving segment could not carry the momentum of above-trend growth from the prior two months, receding slightly in June," said Long in a NAFCU Macro Data Flash report. "Non-revolving growth continues to expand, as consumer demand for auto and student loans remains resilient. The Federal Reserve's second-quarter report on lending standards showed modest tightening in the credit card segment, while auto loan underwriting was mostly unchanged."
Total consumer credit for credit unions increased 0.5% in June from the previous month, compared to a 0.5% increase for banks and 0.2% increase for financial companies. From a year prior, total consumer credit at credit unions rose 8.6%, while banks saw a 5.4% increase and financial companies saw a 0.6% increase, Long said.
Credit unions now own 11.7% of the market, up from 0.2% a year ago. Meanwhile, financial companies' market share fell from 13.8% to 13.2% over that period, while banks' share increased 0.1% to 41.6%.