DALLAS -Credit union CEOs aren't very confident in the state of the economy right now, or with the state of their members' finances and their credit unions' financial condition. Southwest Corporate's Credit Union CEO Confidence Index dropped from 47.40 to 41.06 on the state of the economy. This latest index is based on a nationwide survey of approximately 135 credit union CEOs. The index also measures CEOs' confidence in their credit unions' current and future financial condition. Both of these measures also dropped. "This drop in optimism comes as credit unions have seen a rise in short-term interest rates and many are beginning to expect higher cost of funds in the very near future. This is more of an issue to those credit unions not experiencing solid loan growth," said Brian Turner, Manager of Advisory Services for Southwest Corporate's Investment Services. "The result is an expectation of lower net spreads for the upcoming year." "Two things are contributing to my expectations-increases and uncertainty," said Art Hornell, CEO of the People's Credit Union in Amarillo. "The increase in interest rates and uncertainty over how fast they may rise is dampening my spirits." Interestingly, these drops coincide with The Conference Board's quarterly measure of CEO Confidence, which surveys approximately 100 CEOs in a variety of industries. In assessing their own industries, only 57% say conditions are better, down from 71% last quarter.