Total consumer credit expanded at a slower pace in January, rising by 4.3% after a 6% monthly increase in December.
NAFCU Chief Economist and Vice President of Research Curt Long, in a Macro Data Flash report, noted that revolving credit saw its slowest increase in three years.
“Consumer credit expanded by a slower pace in January. The revolving segment reported its smallest gains since 2015,” Long said. “However, credit card spending is expected to improve as both after-tax income and consumer confidence rise.”
Revolving credit, which is primarily credit cards, rose just 0.8% in January. Long said non-revolving credit, which is mostly vehicle and education loans, “maintained a steady pace during the month,” increasing 5.6%.
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