ARLINGTON, Va.—Total consumer credit rose 5.1%, at a seasonally adjusted, annualized rate in December and is up 5.9% compared to a year ago.
Revolving credit, primarily credit cards, rose 2.4% during the month and is up 6.6% compared to December 2020.
“Consumer credit grew at a respectable pace in December and year-over-year growth reached its fastest pace since 2017,” said NAFCU Chief Economist and Vice President of Research Curt Long. “November witnessed a surge in revolving debt as consumers did their Christmas shopping earlier than normal.
"As expected, some of those gains were given back in December, but revolving debt still grew by 2.4%," added Long.
Total consumer credit for credit unions rose 0.8%, on seasonally adjusted basis, in December, compared to a 1.6% rise for banks and 0.1% decline for financial companies. From a year prior, total consumer credit at credit unions rose 5.7% while banks experienced an 8.0% gain and a financial companies rose 5.0%.
CU Share Down Slightly
Over the past 12 months, credit unions’ share of the market fell by 0.1 percentage points to 12.0%. Meanwhile, banks’ share increased by 0.8 percentage points to 41.1%, and financial companies' share fell by 0.1 percentage points to 13.1%.
“Non-revolving debt continues to hold up in spite of flagging auto sales," said Long. "The supply constraints that continue to hamper vehicle production have propelled used auto prices, although the early returns from January suggest some moderation in pre-owned prices. NAFCU expects more sturdy growth in consumer credit over the medium term as households that paid off credit balances during COVID normalize their balance sheets.”
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