The American Financial Services Association (AFSA) has reported a modest decline in third-quarter conditions according to its Consumer Credit Conditions (C3) Index. Despite this, the association forecasts a stronger six-month outlook amid ongoing economic uncertainties.
According to a blog post by AFSA, there is a positive long-term outlook among its members despite challenges such as economic uncertainty, inflation, and slow growth. Coverage in American Banker highlighted that the C3 Index underscores the consumer credit industry's role in connecting consumers with businesses and supporting the broader economy. The announcement reflects the sector's resilience and optimism for future improvement, according to AFSA.
Consumer credit in the United States saw an increase of $9.18 billion in October 2025, which is down from $11.01 billion in September, translating to a 2.2 percent annual growth rate. Revolving credit expanded at an annual rate of 4.9 percent, indicating continued borrowing for discretionary spending, while nonrevolving credit grew at 1.2 percent. These trends suggest stable consumer credit conditions that support economic activity despite moderating growth.
Total credit and debit card spending per household increased by 1.3 percent year-over-year in November 2025, showing solid but slowed growth compared to October. Consumers' finances remain generally healthy with minimal overreliance on credit or buy-now-pay-later options. Seasonal shopping patterns reveal ongoing consumer resilience amid tradeoffs and heightened price sensitivity.
Founded in 1916, the American Financial Services Association serves as the primary trade association for the consumer credit industry. It advocates for access to credit and consumer choice while representing members including banks, finance companies, and other lenders. The organization's mission focuses on advocacy, education, and promoting responsible lending practices to support economic growth.