The National Association of Federally-Insured Credit Unions (NAFCU) is anticipating a rise in credit card spending in the coming months as households receive their tax refunds.
Officials said total consumer credit rose 3.3 percent in February while its growth decelerated for the third consecutive month.
“The revolving segment reported its smallest gain since November 2013,” NAFCU Chief Economist and Vice President of Research Curt Long said in the association’s Macro Data Flash Report. “Non-revolving credit growth also slowed, but the gain was in line with the average in 2017.”
Total consumer credit increased 4.9 percent in January and 6 percent in December, officials said. From a year ago, total consumer credit was up 5.1 percent. Non-revolving credit rose 4.4 percent while revolving credit, which is primarily made up of credit card use, increased 0.2 percent.
Credit unions’ share of the total consumer credit market remained at 11.2 percent in February, a rise from last year’s 10.8 percent. Banks had 41.2 percent and financial companies held 14 percent of the market in February.
With regard to the credit union industry, officials said its total consumer credit decreased 0.2 percent in February from the previous month, compared to a 1.3 percent decline for banks and a 0.5 percent decrease for financial companies.