WASHINGTON—Total consumer credit rose 3.7% at a seasonally adjusted, annualized rate in January and is up 7.9% compared to a year ago.
Revolving credit – primarily credit cards – rose 11.1% and is up 15.6% compared to January 2022. Non-revolving credit – primarily auto loans and education loans – rose 1.2% during the month and is up 5.5% from a year ago, according to new federal data.
“Consumer credit growth accelerated in January but remained subdued. Other than April 2020 at the outset of the pandemic, January 2023 marked the slowest month for nonrevolving consumer credit since the Great Recession,” said NAFCU Chief Economist and Vice President of Research Curt Long.
Total consumer credit for credit unions fell 0.2% in January, compared to a 1% loss for banks and 0.2% increase for finance companies. From a year prior, total consumer credit at credit unions rose 17.9%, while banks experienced an 11.2 % gain and financial companies grew 0.2%.
CU Share Rises
Over the past 12 months, credit unions’ share of the market rose 1.1 percentage points to 13.2%. Banks’ share rose 1.3%age points to 42.1%, and financial companies' share fell 0.8 percentage points to 12.2%.
“A volatile economy, uncertain outlook, and liquidity constraints mean that credit supply is likely to be reduced over the next year, which should keep growth in consumer credit balances restrained,” concluded Long.
It’s Called Fresh for a Reason. And We Offer Home Delivery. For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com