Lending, While Still Weak, Shows Growth
MADISON, Wis. — Lending grew at the nation's credit unions by a slight 0.4% in May, the second straight positive month for credit unionloan growth, after declining lending for the previous seven consecutive months, according to CUNA.
â€œLoans are still very weak but have moved in the right direction for two months in a row,â€ said Bill Hampel, chief economist for CUNA.
Still, loan growth is down almost 0.7% for the first five months of 2011, after declining almost 1.4% last year. Hampel said he believes loan demand has turned the corner and will start picking up, with CUNA projecting positive loan growth for the year of around 2%.
Share growth also remains tepid, down 0.7% in May, pushing year-to-date share growth down to 3.25%, compared to 3.70% for the first five months last year and 7.99% for the same period in 2009.