ALEXANDRIA, Va. (March 25, 2016) – Despite a weak start in the early part of the year, forecasters expect moderate growth in the U.S. economy, job gains of around 200,000 per month and the unemployment rate to decline to about 4.5 percent at the end of this year, according to a new Economic Update video released today by the National Credit Union Administration.
The latest video in the agency’s Economic Update YouTube series is available here (opens new window).
“For credit unions, the outlook is good news,” NCUA Chief Economist Ralph Monaco said. “It suggests continued solid loan growth and relatively low credit risk. It points to rising deposits and continued membership gains.”
However, some regions and sectors in the U.S. are likely to face challenges for the balance of this year. For example, employment was down compared to a year earlier in states with considerable ties either to the oil industry or to other industries that support oil production.
Credit unions in those areas, Monaco said, “are more likely to see weakening loan demand, increases in delinquency and slower deposit and membership growth.”
The latest Economic Update also reviews recent Federal Reserve policy moves, suggesting what they might mean for the outlook for interest rates and how they might affect credit unions this year.
NCUA’s Economic Update video series is an ideal information resource for credit union board members, loan officers and management. It is available on NCUA’s YouTube channel (opens new window).