In what may be a signal of things to come, an estimated $6.3 billion of savings flowed out of credit unions in August, according to CUNA. CUNA economists were trying to discern whether the outflow-one of the largest ever-was symbolic of a longer trend or just a temporary blip.
Bill Hampel, chief economist for CUNA, noted there was a large outflow of savings last August as part of the traditional slowdown in savings growth, and this August had just four paydays (Fridays), compared to five in July, an anomaly that pumps up savings balances. Through the first eight months of the year savings growth was only 4.2%, less than half the 9% growth for the same period last year, indicating the massive inflow of funds into CUs has peaked, said Hampel.
On the other hand, loan growth was strong in August, at 1.3%, bringing year-to-date growth to 8%, up from 6% for the same period last year. August saw strong growth in home equity loans (3%), credit card loans (2.9%), adjustable-rate mortgages (1.7), new car loans (1.6%) and unsecured personal loans (1.4%).
