DALLAS—A new report on second quarter economic data suggests that although the forecasts for economic growth and unemployment have improved, questions regarding to what extent consumer spending will contribute to GDP growth remain.
“Moreover, concerns remain on whether or not the employment profile of the economy will improve enough so as to instill enough confidence to entice more consumers to open their wallets,” said Brian Turner, executive director with Meridian Alliance.
Turner, known to many for his work at Catalyst Corporate, said that although the demand for consumer financing has improved this year, it has not translated into broad-based loan growth for the credit union industry. For 7% of total credit unions ($500 million or greater in assets), loan growth has approached 14%. But for the remaining 93%, loan growth has collectively fallen by -3%, said Turner.
“Over the past three years, first quarter growth in vehicle loans has been surprisingly strong and credit unions have snatched a larger market share of financing,” said Turner. “This will be a key factor in 2015 loan growth.”