Rick: Expect an economic slowdown

Auto loans will continue their declines, although the future for mortgages bodes well.

Steve Rick

Credit unions can expect slower loan growth, accelerated savings growth, and a sluggish economy in the months ahead, says Steve Rick, chief economist for CUNA Mutual Group.

During a presentation at the 2019 CUNA Lending Council Conference Wednesday in New Orleans, Rick made these observations about the economy and its effect on credit unions:

  • The U.S. economy remains strong due in large part to low unemployment, rising wages, and strong consumer confidence. However, the U.S. trade war with China, declining business spending, uncertainty over Brexit, a possible recession in Europe, and slowing growth in China are hindering economic growth.Rick forecasts 2.3% economic growth in 2019 and 0.5% growth in 2020, before the economy “comes roaring back in 2023” with 3% growth.

 

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