Newsroom
Consumer credit remains 'solid'
"Despite heightened risks to the economy, consumer sentiment and spending are strong," said NAFCU Chief Economist and Vice President of Research Curt Long following the release of data that revealed total consumer credit rose 5 percent in May (seasonally-adjusted, annualized) and is up 5.2 percent versus a year ago.
"Consumer credit growth was solid for a second consecutive month in May," said Long in a NAFCU Macro Data Flash report. "In a reversal of longstanding trends, the revolving loan segment led the way in April and again in May, averaging 8 percent annualized growth over those two month. … Delinquency rates have been rising for auto and credit card loans, but are generally on par with pre-crisis levels."
Total consumer credit for credit unions decreased 0.3 percent in May from the previous month, compared to a 1.1 percent increase for banks and a 0.4 percent increase for financial companies. From a year prior, total consumer credit at credit unions rose 9 percent, while banks saw a 5.2 increase and financial companies saw a 0.3 percent decline.
Credit unions now own 11.7 percent of the market, up 0.4 percentage points from a year ago. Meanwhile, financial companies' market share fell from 13.9 percent to 13.1 percent over that period, and banks' share remained unchanged at 41.5 percent.