DALLAS-Credit union CEO confidence plummeted last week, according to the quarterly confidence survey conducted by Southwest Corporate FCU, to its lowest in the four years the survey has been conducted.
The CEO Confidence Index plunged to just 10.50, from an already-low 25.22 in the previous quarterˆthe largest drop from one survey to the next in the past four years. The survey gauges CEOs on how they see their credit union‚s and their members‚ condition now and in six months; and loan demand and share growth in six months.
Interestingly, the large drop followed a seven-point advance in the third quarter survey, which was conducted just before the flurry of September financial institution failures, including Fannie Mae and Freddie Mac, Lehman brothers, WaMu, Wachovia and several others.
In the November Special Survey, CEOs were downbeat across the board, registering the lowest marks in the four years of the survey for credit union and member financial conditions, both now and in six months. Most notable was the substantial fall for credit union financial condition and for member financial condition six months from now, with both declining by 22 points. Expectation for loan demand six months from now dropped from 20 points in the last survey to zero.
A total of 196 CEOs of 845 polled responded to the survey, a 23% response rate.
