ARLINGTON, Va.—Total consumer credit has increased by an annualized 2.6% in April; meanwhile, consumer credit for credit unions rose 1.6% during the month – compared to a 0.5% increase for banks and 0.5% decrease for financial companies, reported NAFCU.
This followed overall consumer credit growth of 6.2% in March.
"Consumer credit growth weakened in April following two months of healthy gains," NAFCU Chief Economist and Director of Research Curt Long wrote in a Macro Data Flash. "With vehicle sales moderating, non-revolving credit growth decelerated to 2.9% in April—the slowest pace since December 2015. Revolving credit growth also fell below expectations.
"The outlook for consumer lending remains positive in light of a strong labor market and positive consumer confidence," he continued. "However, robust growth is unlikely as borrowing costs rise."
Consumer credit increased year-over-year by 5.8%.
Credit unions' share of the total consumer credit market increased to 10.6% in April, compared to 39.6% for banks and 17.5% for financial companies, Long noted.