The July CUNA Economic Update explores Brexit’s ramifications and highlights impressive credit union operating results, a strong consumer sector and sharply reduced volatility on the stock market.
“The U.S. economic recovery is in little danger of being pushed off track despite Britain’s shocking vote to exit the European Union (Brexit), as Britain represents only 3% of U.S. international trade,” said Mike Schenk, CUNA vice president of economics and statistics. “America is much more dependent on other countries for trade, so even if the British economy suffers, it is unlikely to have a big follow-on effect on the U.S.”
The most recent credit union-specific indicators reflect continued solid operating results. Accelerating membership growth, for example, stands out as especially impressive. U.S. credit union memberships increased by more than 3% in 2014, up to 3.5% during 2015, and is on track to top that result in 2016.
Loan growth has also been impressive and is likely to stay strong throughout the rest of the year. In the aggregate, credit unions are likely to report loan growth exceeding 10% in 2016, which would mark the first time in roughly 3 decades that the movement posted 3 consecutive years of double-digit increases in loan balances.
CUNA Economic Update, which is sponsored by CUNA CFO Council, is available for free to all CUNA member credit unions.