WASHINGTON—Total consumer credit rose 4%, at a seasonally-adjusted, annualized rate, in August and is up 4.9% compared to a year ago. Revolving credit, primarily credit cards, rose 3.6% during the month and is up 2.1% compared to August 2020.
“On a seasonally-adjusted basis, consumer credit posted another strong month, marking six months of expansion,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Consumer credit growth has slowed yet again, indicating some consumer reluctance to spend amidst the Delta spread, which has since abated somewhat.
“Revolving credit took another hit, with annualized growth dropping by half compared to last month,” continued Long. "Nonrevolving credit was stable even as vehicle sales fell for the fifth consecutive month."
Total consumer credit for credit unions rose 1.1%, on seasonally-adjusted basis, in August, compared to a 1.1% rise for banks and 0.4% rise for financial companies. From a year prior, total consumer credit at credit unions rose 5.4% while banks experienced a 5.2% gain and a financial companies rose 5.7%.
Marketshare Unchanged
Over the past 12 months credit unions’ share of the market was unchanged at 12.2%. Similarly, banks’ share was unchanged at 40%, while financial companies' share fell by 0.1 percentage points to 13.3%.
“NAFCU expects consumer credit to continue to grow through the rest of the year, particularly in revolving credit, though it might be bumpy as consumer confidence returns,” concluded Long. "Nonrevolving credit will be held back by auto supply issues into next year."