A recently released National Association of Federally-Insured Credit Unions (NAFCU) Macro Data Flash report determined total consumer credit increased 10 percent in May.
Additionally, the analysis showed the number represents a rise of 3.8 percent over a year ago while revealing revolving credit climbed 11.4 percent during the month – a decline of 2.2 percent versus April 2020.
“The shortage in semiconductors to build new vehicles could slow down non-revolving credit in the coming months, but that will resolve itself as supply stabilizes,” Curt Long, NAFCU’s chief economist and vice president of research, said. “Where consumer confidence and the labor market are improving, consumer credit is likely to follow.”
The report detailed credit union total consumer credit was on the rise 2.3 percent over the month, total consumer credit at banks rose 1.9 percent over the year, and financial companies saw a 7.7 percent increase.
“NAFCU expects strong gains in consumer credit through the year, particularly in revolving credit as consumers return to spending,” Long said.
While credit unions’ market share rose 0.1 percentage points to 12.2 percent in May, the report indicated banks’ share rose 0.3 percent to 39.5 percent and financial companies’ share dipped 0.1 percent to 13.5 percent.