WASHINGTON — May savings came in strong even without the "payroll effect" and in line with CUNA's forecast, according to Chief Economist Bill Hampel.
May savings growth reached 0.5%, the strongest since 2003 or 2004, he said. Hampel added, "May ended on a Thursday, which means the payroll effects were not yet into accounts until the next day." Savings were up 4% through May to $645 billion, compared to 1.7% over the same period last year.
Money markets led the way at 1.9% growth in May with certificates coming in second at 1.1% growth. At the same time, share drafts were down 1.7%.
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Loans have slowed as forecast, up just 0.8% in May and 1.9% year-to-date, according to CUNA's Monthly Credit Union Estimates. Loan growth was at 2.8% during the same period in 2006. Fixed rate first mortgages led growth for the month, up 2.2% with credit cards close behind at 2.0% growth. CUNA showed only home equities declining of the major categories.
Because loans still slightly outpaced share growth, the loan to saving ratio was up to 81% for May from 80% in April.
Capital remained strong at 11.4% and delinquencies sat at 0.7% for May.
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