RIVERWOODS, Ill. – Credit union members are reporting a significant drop in confidence related to both their own personal finances and the economy overall, with 69% now rating the economy as poor, compared to 56% a year ago, in the latest Discover U.S. Spending Monitor.
It is the highest negative figure the Spending Monitor has recorded.
The survey found there is still slight difference in how credit union members, who are typically more optimistic about the economy, view the economy vs. non-credit union members. For instance, 59% of members believe the economy is worsening, compared to 64% of the general population.
At the same time, 21% of members say their personal finances are poor, compared to 29% of the general population.
Discover noted that members also tend to better manage their budgets than the general population, but the most recent survey found more members struggling to balance their budgets, with 42% saying they will face an added expense or shortfall in income, compared to just 36% a year ago.
Looking forward, 39% of members plan to spend more on household expenses next month, compared to just 30% at this time last year. At the same time, 36% of the general population plans to spend more on these items next month, which is a five-point increase from a year earlier. Discretionary spending on entertainment, such as dining out or going to the movies, also appears to be flat for members, compared to last month, with just 7% of members saying they will spend more next month on such discretionary items.
And in what may be good news for credit unions, just 8% of members say they will save more next month, the same figure as September and a 1-point decline from a year ago. However, a full 39% of credit union members say they will invest or save less next month, which is a five-point increase from one year ago.
