ARLINGTON, Va.—While total consumer credit rose 3.6% in November (seasonally-adjusted, annualized) and is up 4.5% from a year ago, NAFCU Chief Economist and Vice President of Research Curt Long flagged some “unusual data.”
"The revolving credit sector declined compared to last month, which is somewhat concerning on the face of it," Long. Revolving credit, which is primarily credit cards, fell 2.6% during the month while non-revolving credit, which is primarily auto and education loans, rose 5.8% over the same period.
"It was an odd November with Thanksgiving falling so late in the month, pushing Cyber Monday into December," Long added. "There may be a correction coming with next month's data. The economy is strong and sentiment appears resilient in the face of geopolitical risks. NAFCU expects more steady growth overall for consumer debt this year."
Consumer Credit Down at CUs
Total consumer credit for credit unions fell 0.4% in November from the previous month, compared to increases for banks (+0.8%) and financial companies (+0.2%). From a year prior, total consumer credit at credit unions rose 3% while banks and financial companies saw increases of 4.9% and 0.9%, respectively.
Credit unions now own 11.6% of the market, down slightly from the previous month. Meanwhile, financial companies' market share held steady at 12.9%, while banks' share rose slightly to 41.9%, Long said.