ARLINGTON, Va.—Total consumer credit rose 1.9% at a seasonally adjusted annualized rate in January, and is up 6.2% compared to a year ago. Credit union share of the market declined slightly over the last year.
Non-revolving credit, such as auto and education loans, rose 2.5% in January, while revolving credit, primarily credit cards, fell 0.3% and is up 8.4% compared to January 2021.
“Consumer credit growth slowed in January, but year-over-year growth continued to accelerate, reaching its fastest pace since 2017,” said NAFCU Chief Economist and Vice President of Research Curt Long. “According to the NY Fed’s survey of consumer expectations for January, respondents reported a perception that credit is harder to access than a year ago and will continue to be difficult moving forward. January witnessed a fall in revolving debt as households paid off credit balances from Christmas to normalize their balance sheets.”
Total consumer credit for credit unions rose 0.3%, on a seasonally adjusted basis, in January, compared to a 1.0% fall for banks and 0.1% increase for financial companies. From a year prior, total consumer credit at credit unions rose6.3% while banks experienced a 9.3% gain and financial companies rose 3.9%.
Credit Union Share Declines
Over the past 12 months, credit unions’ share of the market fell by 0.1 percentage points to 12.1%. Banks’ share also decreased by 0.4 percentage points to 40.7%, and financial companies' share fell by 0.1 percentage points to 13.0%.
“Non-revolving balances expanded but at a much slower pace in January, which is likely due to slower auto sales,” concluded Long. “NAFCU expects demand for consumer credit to pick up as households deal with spiking gas prices.”
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