PLANO, Texas — Credit union CEO confidence in the economy has climbed to its highest level in more than six years, according to Catalyst Corporate FCU's Q1 CEO Confidence Survey.
The poll's overall Confidence Index rose more than three points, for the second consecutive quarter, to 30.32 points—the first time the Index has topped 30 since third quarter 2007 (34.27).
The marked rise in CEO confidence was clearly reflected in executives answering every survey question more positively, something that has not occurred in the survey since late 2008.
CEOs are most confident in members’ current and future (six months down the road) financial condition—both numbers increased by about 5.5 points over the previous quarter. CEO confidence regarding their own institutions’ current and future financial conditions also increased, by 2.47 and .95 points, respectively.
CU leaders also anticipate growth in both loans and deposits over the next six months—the first time that has happened in three years.
"We've had a bevy of good economic news over the past few weeks, namely a sizeable drop in the nation’s unemployment rate, new historical highs in the stock market and stable consumer prices, including cheaper gas prices," said Brian Turner, director and chief strategist for Catalyst Strategic Solutions. "If anything, these events have given consumers a chance to catch their breath after the economic volatility of the past five years. Credit union managers may be reflecting that sense of relief on the part of their members.
"Hopefully," Turner added, "this latest enthusiasm won't be short-lived, and the recovery will begin to expand enough that member spending will strengthen, and credit unions will experience a more broad-based growth trend in loan demand at higher interest rates."
The survey was sent to 2,022 CEOs across the nation in April, with 207 responding.
