ARLINGTON, Va.—Total consumer credit rose at a seasonally adjusted, annual rate of 4.8% in February.
NAFCU Chief Economist and Director of Research Curt Long said the outlook for consumer lending looks positive overall.
"While higher interest rates could impact spending, the outlook for consumer lending remains positive in light of a strong labor market and rising consumer confidence," Long said in a NAFCU Macro Data Flash report.
Non-revolving credit, which is mostly motor vehicle and education loans, increased 5.3%, while revolving credit, which is primarily credit cards, rose 3.5%.
From a year ago, total consumer credit was up 6.3%. Non-revolving credit increased 6.4%, while revolving credit increased 6.2% from the prior year, Long said.
Total consumer credit for credit unions rose 0.9% in February from the previous month; banks and finance companies had decreases of 1.2% and 0.7%, respectively. In the fourth quarter, total consumer credit at credit unions increased 2.6%, while banks saw an increase of 3.8% and financial companies logged a decrease of 0.7%.
Credit unions' portfolio of consumer credit was up 12.1% from last year, Long noted. Credit unions now control 10.4% of the market, which is up from 9.8% a year ago.