The National Association of Federally-Insured Credit Unions (NAFCU) Chief Economist Curt Long issued the following statement after the Federal Reserve reported its consumer credit data for the month of September, 2018:
“Consumer credit growth decelerated somewhat in September. Revolving credit fell for the fifth time of the year as interest rates continue to rise,” says NAFCU Chief Economist Curt Long.
“According to the Federal Reserve, the average rate for commercial bank credit card balances reached 14.4 percent in the third quarter, the highest since 2001. The non-revolving sector continued to post gains. However, the student loan growth has decelerated in recent years as the tight labor market attracts more potential students. Growth of auto loans is also expected to slow, in part due to higher borrowing costs and tighter credit conditions. Nevertheless, the outlook for consumer credit remains stable in light of a strong labor market and elevated consumer confidence.”
NAFCU has produced the attached data flash based upon Federal Reserve’s September consumer credit report.