MADISON, Wis. (1/16/15)--Economists from the Credit Union National Association and CUNA Mutual Group have released an updated economic outlook for 2015.
Labor markets continue to strengthen at a pace faster than had been anticipated, leading to a revision in the estimates for 2015, according to CUNA.
"The latest forecast reflects changes primarily in three areas: the unemployment rate, Federal Funds rate and credit union return on average assets (ROA)," said Perc Pineda, CUNA senior economist.
"The improvement in the labor markets, better than most economists anticipated, has far-reaching effects," Pineda added. "Not only is the unemployment rate lower because the economy continues to grow, it is a signal that the Fed will have to consider raising the Fed funds rate at some point. And if that happens it will affect credit union ROA."
Given current economic data, CUNA and CUNA Mutual economists expect the following trends:
The next economic forecast provided by CUNA and CUNA Mutual will incorporate detailed quarterly data on 2015, in addition to annual data for 2014, which will be released in early March.