ARLINGTON, Va.—Total consumer credit rose 8.3%, at a seasonally-adjusted, annualized rate, in September and is up 4.9% compared to a year ago. Revolving credit, primarily credit cards, rose 11.8% during the month and is up 2.7% compared to September 2020.
“The deleveraging impulse from early in the pandemic is behind us, and monthly growth in consumer credit has averaged 6% annualized since January,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Revolving balances drove growth in September, and retail spending remains well above the pre-COVID trend.
“That should only improve as the delta variant fades,” noted Long. "Nonrevolving credit was solid in spite of flagging auto sales."
Total consumer credit for credit unions rose 0.8%, on seasonally-adjusted basis, in September, compared to a 0.8% rise for banks and 0.8% rise for financial companies. From a year prior, total consumer credit at credit unions rose 4.3% while banks experienced a 5.8% gain and a financial companies rose 5.4%.
Over the past 12 months, credit unions’ share of the market fell by 0.1 percentage points to 12.1%. Meanwhile, banks’ share increased by 0.3 percentage points to 40.1%, and financial companies' share increased by 0.1 percentage points to 13.3%.
“NAFCU expects consumer credit to continue to grow through the rest of the year, particularly in the revolving segment,” concluded Long. "Nonrevolving credit will be held back by auto supply issues into next year."