Credit union membership growth in June doubled compared to May, as year-over-year membership growth hit 3.51% in June, according to CUNA’s Monthly Credit Union Estimates for June. Monthly credit union loan growth increased by 0.68% in June, the slowest June since 2012, and as is the norm, second quarter loan growth (1.76%) was higher than first quarter growth (0.43%).

“The overall pattern we’re seeing is that of a slowdown in the pace of loan growth,” said Samira Salem, CUNA senior economist. “While still healthy, year-over-year loan growth in June registered, 6.32% as compared to 9.55% last year. These results are not surprising given that U.S. economic growth is slowing.”

“New automobile loan growth put a drag on credit union loan growth as it continued to decline for the sixth month in a row, registering -0.09% growth for the month,” Salem said. “This trend mirrors the slowdown in new car sales nationwide.”

In July, the National Automobile Dealers Association (NADA) indicated that it expects new car sales in June to decrease 1.00-2.00%. In addition, NADA reports that new car sales in 2019 “have declined relative to 2018 each month this year.”

Home equity line of credit loan (HELOC) growth was also in negative territory coming in at -0.19%; this is slightly better than May when HELOC growth fell 0.95%.

Even with the overall slowdown in credit union loan growth this month, adjustable rate mortgage loan growth rebounded to 0.45% in June from -0.02% in May.

In addition, unsecured personal loan growth increased significantly from -0.23% in May to 2.33% in June.

“We haven’t seen this level of growth in unsecured personal loans since mid-2014,” Salem said.

June savings growth registered -0.13%, down from 1.30% in May.

“As is typical, savings growth for the second quarter (0.59%) was slower than growth in the first quarter (4.28%). A steep decline in June share draft growth (-4.72%) drove these results,” Salem said. “Consumer confidence experienced some volatility in recent months but remains high and consumer spending while slightly slower in June remained strong. During the month, consumers focused their spending on personal consumption items and slowed their spending on large ticket items.”

Regular shares, money market accounts, and certificates of deposit all showed growth in June although in each case growth was slower than in May.

The June loan-to-share ratio increased slightly to 83.52% from 82.85% as loan growth for the month was higher than savings growth.

June membership growth doubled compared to May, growing from 0.16% to 0.32%. Year-over-year membership growth registered a healthy 3.51% in June.