NAFCU Offers Credit Predictions

ARLINGTON, Va.–NAFCU is predicting consumer installment credit to grow by 4% this year despite seeing a general slowdown in credit card expansion after the holiday shopping season brought 2006 to a close. In its recent “Flash Report” NAFCU said total consumer installment credit increased at an annual rate of 3.2% to $2.4 trillion in January, while non-revolving credit increased by 4.4% to $1.5 trillion and revolving credit increased to $879.4 billion from $878.6 billion in the previous month.Other factors cited by NAFCU: Total credit union consumer lending rose to $236.1 billion from $236.3 billion in December on a non-seasonally adjusted basis; nonrevolving credit union consumer lending expanded by $200 million to $207.6 billion and revolving credit contracted from $28.9 billion in December to $28.5 billion in January. Credit unions’ share of total consumer installment credit increased 2 basis points to 9.71 percent from the December figure and is higher than the average percentage share for 2006 of 9.69%.“NAFCU expects loan demand to decline from 7.9% in 2006 to 6% in 2007 due to a slowdown in the economy, particularly in light vehicle lending,” the trade group said, adding, “Despite the slowdown in 2006 in total consumer installment lending, credit unions still managed to outpace finance companies, the Federal Government and Sallie Mae, savings institutions, and non-financial businesses.”