ARLINGTON, Va.—Total consumer credit rose by 5.8% in December after hitting the fastest pace since July 2011 in November.
NAFCU Chief Economist and Vice President of Research Curt Long, in a Macro Data Flash report, attributed the slowdown to "decelerating auto loan growth."
"Consumer credit continued to expand in December, albeit by a slightly slower pace," Long said. "Revolving credit continues to expand, and households cut their savings rate in December to just 2.4%. Non-revolving credit also maintained a steady pace of growth during the month."
Revolving credit, which is primarily credit cards, rose 6% in December. Non-revolving credit, which is mostly vehicle and education loans, increased 5.7% during the month.
Total consumer credit at credit unions rose 1% in December from the previous month, compared to a 1.6% increase for banks and a 0.2% decrease for financial companies. In the fourth quarter, total consumer credit rose 3.9% at credit unions, increased 4.8% at banks and decreased 2.8% at financial companies, Long said.
"Credit unions' portfolio of consumer credit rose by 11.8% during 2017," Long added. "Credit unions now own 11.1% of the market, which is up from 10.4% a year ago."
Banks' market share was 42% in December, unchanged from 12 months ago; financial companies' share fell from 15% to 13.7%. Total consumer credit saw a monthly increase of 9.8% in November and a 7.3% increase in October (all seasonally adjusted annual rates), Long said.