NAFCU Chief Economist Reports Consumer Credit Grows Faster than Predicted

Curt Long

"Consumer credit grew by $28 billion in November, much faster than experts forecasted. Revolving debt grew at an accelerated pace of 16.9 percent as households conducted holiday shopping. Although consumer sentiment remains low, workers are confident in their job situations and willing to spend and absorb more debt. Average credit scores for loan originations rose in recent years but are beginning to rift back to pre-COVID levels. The Office of Comptroller of the Currency warned lenders, saying “bank management needs to closely guard against complacency in underwriting practices.” NAFCU expects consumer credit to continue expanding in the first half of 2023, but growth is likely to slow due to tighter credit provision."

​- NAFCU Chief Economist and Vice President of Research Curt Long.

A few other points:

• Total consumer credit rose 7.1% at a seasonally adjusted annualized rate in Nov. 2022;
• Revolving credit (primarily credit cards) rose 16.9% , while non-revolving credit (primarily auto and education loans) rose 3.9%;
• Over the past 12 months, credit unions' share of the market rose 1.1 percentage points to 13.1 %.

---