The new economic update video released by the National Credit Union Administration reveals firm labor markets and increasing consumer spending means credit risk is likely to remain low in most areas. Watch the full report here.
In the opening segment, NCUA Chief Economist Ralph Monaco reviews current economic trends and how they could affect credit union income and costs. According to Monaco, the Brexit vote has dimmed the outlook for growth in other countries over the next few years and increased insecurity in financial markets. That may eventually translate into somewhat slower U.S. growth directly, with much of the effect showing up in manufacturing and commodities production.
“Brexit reminds us that economic circumstances can change quickly,” Monaco said. “Credit unions need to be aware and ready to adapt to potential changes that can affect the financial health of their membership.”
Other topics covered include recent employment developments, housing market improvements and household spending.