WASHINGTON—New data from the Federal Reserve show total consumer credit rose at a seasonally adjusted, annualized rate of 6.3% in December and is up 4.5% from a year ago.
"Consumer credit growth sped up in December, fueled by strong growth in the revolving credit sector that made up for November’s losses," NAFCU Chief Economist and Vice President of Research Curt Long said.
Revolving credit, which is primarily credit cards, rose 14% during the month, up 4.2% compared to this time last year. Non-revolving credit, which is primarily auto and education loans, grew 3.7%.
“In the latest Fed Senior Loan Officer Survey, 18.2% of banks tightened standards for credit card borrowers,” Long added. “NAFCU expects supply constraints to weigh on consumer credit growth in 2020, although those effects are mitigated by the strong labor market.”
Credit Unions & Banks
Total consumer credit for credit unions rose 0.1% in December from the previous month, compared to a 2% increase for banks and a 0.1% increase for financial companies. From a year prior, total consumer credit at credit unions increased 2.8% while banks and financial companies saw increases of 5.7% and 0.5%, respectively.
Credit unions now own 11.5% of the market, down slightly from the previous month. Meanwhile, financial companies' market share declined to 12.8%, while banks' share rose slightly to 41.9%, Long noted.