ARLINGTON, Va.—Total consumer credit rose 2.6% in June on seasonally-adjusted, annualized basis, up 0.9% versus a year ago.
NAFCU Chief Economist and Vice President of Research Curt Long predicts additional gains will be slow due to a rise in coronavirus cases and paused state reopenings.
"Revolving credit posted another decline, although it was smaller and revolving credit is generally volatile," noted Long. "Nonrevolving credit is continuing to grow partly driven by low interest rates."
"Supply is becoming constrained as 60% of banks reported tightening standards on credit cards and 16.7% on auto loans, according to the Federal Reserve’s latest Senior Loan Officer Opinion Survey," Long added.
No Change in Share
Total consumer credit for credit unions rose by 0.4% in June, compared to a 0.2% increase for banks and a 0.2% slip for financial companies. From the previous year, total consumer credit at credit unions rose 1.1%, while banks saw a 2.3% drop and financial companies were unchanged.
Credit unions own 11.7% of the market, unchanged from the previous month. Meanwhile, banks' share increased 0.1% to 40.4%, while financial companies' also remained unchanged, Long said.