Georgia’s credit union members saved less of their money in the first quarter, an indication that they are spending more as the economy improves, according to the industry’s trade group.
Total savings balances were up 4.2 percent during the quarter, a slight drop from the 5.5 percent hike in total savings during the same period in 2012, according to Georgia Credit Union Affiliates. The group said spending was up as reflected in total loans at Georgia credit unions increasing 6.6 percent.
“For the first time in several years, Georgians do not feel the same level of pressure to save a significant percentage of their paychecks to rebuild their balance sheets,” GCUA President Mike Mercer said in releasing the quarterly “Paying Attention” report. “This is a marked improvement from recent years and shows cautious optimism by Georgia’s consumers.”
The GCUA said its report reflects credit union activity from March 2012 to March 2013 at 42 credit unions across the state.
Georgia wage earners, like others across the country, also had less money to save in the first quarter after 2 percentage points of the Social Security payroll tax were restored. The payroll tax “holiday” expired at the end of December 2012.
According to the U.S. Bureau of Economic Analysis, the U.S. personal savings rate, which reflects savings as a percentage of disposal personal income, was 2.6 percent in the first quarter, a sharp drop from the 4.7 percent savings rate in the fourth quarter.
While the credit unions’ results do not reflect personal savings rates, they do indicate the level of saving among many of Georgia’s 1.9 million credit union members.
Among other findings in the “Paying Attention” report:
- Credit union checking account balances grew by 11.9 percent in the first quarter while regular savings account balances grew by 7.5 percent. Money market balances grew by 2.6 percent in the quarter.
- Georgia's credit union membership grew 1 percent in the first quarter, compared with 2 percent in the same period a year ago. Membership is up 2.3 percent for the last 12 months.
- Members continue to pay down credit card balances, which declined by 5 percent during the first quarter.
- New vehicle loans at Georgia credit unions rose 15.9 percent in the past year.
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