Newsroom
Consumer credit rises in February; 'Economic boom within sight,' says NAFCU's Long
Total consumer credit rose 7.9 percent in February, at a seasonally-adjusted, annualized rate and is unchanged versus a year ago. Revolving credit, which is primarily credit cards, rose 10 percent during the month but is down 11.2 percent compared to February 2020.
Non-revolving credit – primarily auto and education loans – rose 3.7 percent in February and is up 4.3 percent over the year.
"The economic situation continues to improve and the post-COVID economic boom is within sight," said Curt Long, NAFCU's chief economist and vice president of research, in a new Macro Data Flash report. "In the Federal Reserve’s fourth quarter Senior Loan Office Survey, a net 13 percent of loan officers reported easing lending standards for credit cards, while a ‘moderate net share of larger banks reported stronger demand.’
"NAFCU expects consumer credit to continue to expand briskly as consumer sentiment is strong and the jobs market is rapidly improving," Long concluded.
Total consumer credit for credit unions rose 0.4 percent over the month, representing a 1.7 percent rise from a year prior. Consumer credit at banks declined 5.1 percent over the year, while financial companies saw a 5.1 percent rise.
Over the past 12 months, credit unions' share of the market has risen 0.2 percentage points to 11.8 percent. Meanwhile, banks' share fell 1.2 percentage points to 39.5 percent, and financial companies' share has risen 0.7 percentage points to 13.4 percent.
For more up-to-date economic updates from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.