ARLINGTON, Va.—Total consumer credit rose a modest 3.9% in June, with both revolving and non-revolving credit losing some momentum.
However, NAFCU Chief Economist and Vice President of Research Curt Long pointed out that credit card debt rose to a record high, surpassing the previous peak set in 2008.
"A recent Federal Reserve survey found that banks are tightening lending standards on credit card and auto loans," Long said in a NAFCU Macro Data Flash report. "Nevertheless, the outlook for consumer lending remains positive in light of a strong labor market and positive consumer confidence."
Non-revolving credit, which is mostly motor vehicle and education loans, increased 3.5% in June, while revolving credit, which is primarily credit cards, rose 4.9%.
Total consumer credit saw a 5.7% increase in May and a 3.9% increase in April (all seasonally adjusted annual rates).
Total consumer credit for credit unions rose 0.7% in June from the previous month, compared with a 0.4% increase for banks and a 0.7% increase for financial companies. In the second quarter, total consumer credit at credit unions rose 4.5% but rose just 1.8% and 0.3% at banks and financial companies, respectively.
Credit unions' share of the total consumer credit market remained at 10.6% in June, while banks had 39.7% and financial companies held 17.4% of the market.