WASHINGTON—Total consumer credit has slowed a bit, growing by 3.1% in March (seasonally adjusted, annualized), While the CU number is up 4.9% versus a year ago, other lenders saw decreases during March.
NAFCU Chief Economist and Vice President of Research Curt Long noted that the delayed effects of rising interest rates and moderation in consumer sentiment could ease demand in 2019.
“Consumer credit grew only modestly in March, registering the weakest growth rate in nine months,” said Long in a NAFCU Macro Data Flash report. “Household balance sheets are in good shape overall, but the delayed effects of rising interest rates, along with some moderation in consumer sentiment mean that demand is likely to be tempered in 2019. The Federal Reserve's most recent loan officer survey indicates that supply constraints could be a factor as well, as rising delinquencies lead lenders to tighten their underwriting standards.”
Total consumer credit for credit unions grew by 0.1% in March from the previous month, compared to a 0.3% decrease for banks and a 0.2% decrease for financial companies. From a year prior, total consumer credit at credit unions rose 11.7%, while banks saw a 4.8% increase and financial companies saw a 0.2% decline.
Credit unions now own 11.8% of the market, up from 11.1% a year ago. Meanwhile, financial companies' market share fell from 13.9% to 13.2% over that period, while banks' share fell from 41.2% to 41.1%, Long noted.