A 1.4% declinein loans outstanding in 2010 and a modest 1.2% increase in 2011 atcredit unions may be closely linked to how members feel about theeconomy and jobs.
|“The employmentsector is the center of economic growth and credit unionloan demand as consumers defertheir spending behavior during times of perceived job insecurity,falling home values and volatile stock markets,” wroteBrian Turner, director andchief strategist at Catalyst Strategic Solutions, asubsidiaryof Catalyst Corporate Federal Credit Union in Plano, Texas, in hislatest analysis.
|The Department of Labor reported Friday that thenation's unemployment rateincreased to 8.2%. In May, employers added only 69,000 people to theirpayrolls, which was the smallest increase a year.
|Turner said the nation's underemployment rate, whichcombines those unemployed with those working part time but desirefull-time work and those who have given up their search for lack ofjobs, increased to 14.8%, or approximately 22.9 million people,Turner said.
|“The Fedcurrently estimates consumer spending growth in 2012 to be onlyslightly higher than 2011, therefore the outlook for consumer loangrowth for the remainder of this year and probably the first halfof next year to be rather moderate,” Turner said.
|Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
