ARLINGTON, Va.— Total consumer credit rose 3.4% in January (seasonally-adjusted, annualized) and is up 4.4% versus a year ago, according to new data that also show a decrease in revolving credit.
That pullback in revolving credit volume during January is “no surprise,” as lending standards have been tightening, according to NAFCU Chief Economist and Vice President of Research Curt Long
Non-revolving credit continued its growth streak and rose 5.8%, up 4.8% from a year ago. However, revolving credit dropped 3.4%.
"Fears stemming from the coronavirus are bound to affect consumer behavior and loan demand," said Long. "NAFCU expects consumer credit to continue to decline in the short term based on rising anxieties."
Total consumer credit for credit unions and financial companies were "flat" in January, compared to a 1.2% decrease for banks. From a year prior, total consumer credit at credit unions rose 2.3%, while banks saw a 5% increase and financial companies grew 2.3%.
Credit unions' share of the market remained at 11.5%, up 2.3% from a year earlier but slower than overall growth. Meanwhile, banks' share grew 0.3 percentage points to 41.7%, and financial companies' share remained unchanged at 12.8%., Long said.