ARLINGTON, Va.—Total consumer credit fell 19.6% in April at a seasonally-adjusted, annualized rate, but is up 1.6% versus a year ago. NAFCU Chief Economist and Vice President of Research Curt Long expects a continued fall as unemployment remains high in a slow-recovering economy.
"Consumer credit growth plummeted in April, dwarfing last month’s first month-to-month decline since 2011," said Long. "Revolving credit drove the fall, posting its greatest monthly decline in the series’ history."
Revolving credit, which is primarily credit cards, fell 64.9% at a seasonally-adjusted, annualized rate in April and is down 4.2% compared to last year. Non-revolving credit, which is primarily auto and education loans, fell 4% during April and is up 3.6% from a year ago.
On an unadjusted, unannualized basis, total consumer credit for credit unions fell 2.5% in April, compared to a 3.3% decrease for banks and 0.2% increase for financial companies. From a year prior, total consumer credit at credit unions increased 0.4%, while banks and financial companies both experienced a 0.2% drop, Long said.
Credit unions now own 11.7% of the market, while financial companies' and banks' market shares fell to 13% and 40.6%, respectively., Long added.