CU Members Losing Economic Confidence, Discover Says
The Discover brand's U.S. Spending Monitor indicates that credit union members became as pessimistic about the economy as non-credit union members over the course of this year's first quarter.
The indices that make up the overall Spending Monitor report found that 38%of credit union members felt economic conditions were getting worse in January, compared to 42% of non-credit union members.
But by April, the gap in sentiment between credit union and non-credit union members had closed, with 51% of credit union members having reported feeling economic conditions were worsening, a 13-point increase, while 52% of non-members reported feeling this way, a 10-point increase.
The Spending Monitor also found CU members have become more pessimistic about the current economy. In January, 49% of credit union members rated the economy as poor, compared to 52% of non-credit union members.
In April, credit union members expressed greater pessimism than non-credit union members, with 56% rating the economy as poor, a 7-point decline, compared to 55% of non-members, a 3-point decline.
“Credit union members’ confidence has been shaken and they are no longer more optimistic about the economy than non-credit union members,” said Kevin O’Donnell, vice president of credit issuance for Discover. “Forces in the economy – notably higher gas prices – affect most everyone, and may be contributing to the leveling of economic confidence we’re seeing between credit union and non-credit union members