The Michigan Credit Union League is cautioning credit unions that the state's economy will lag U.S. economic performance this year. The MCUL's Michigan Credit Union Economic Update reports that while the U.S. economy is poised for long-term expansion of 3.5%-4% in 2005-06, Michigan's economy will grow just 1.7% this year.
"From a credit union perspective, a weaker Michigan economy may mean that, in general, the credit union return on average assets will continue to lag behind the national average, as it has since 1998," said Michigan Credit Union League (MCUL) Consulting Services Director Brian Paul, author of the report. "The U.S. economy, as measured by gross domestic product (GDP), grew at a healthy pace in 2004 and is expected to do so again in 2005. There are, however, still a number of conflicting signals."
Paul noted that nationally job creation and unemployment have both improved, but not so in Michigan," where the manufacturing sector remains weak. For info: www.mcul.org.
