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NCUA Chief Economist Reports Moderate Economic Growth in Latest Update

by Ken Anderson | May 29, 2013
The economy is growing moderately and the unemployment rate is improving a bit more than expected, says National Credit Union Administration Chief Economic John Worth in his May 2013 update

The economy is growing moderately and the unemployment rate is improving a bit more than expected, says National Credit Union Administration Chief Economic John Worth in his May 2013 update.

In a new YouTube video, Worth said the Real Gross Domestic Product (GDP) grew a moderate 2.5 percent in the first quarter of 2013, fueled by consumer spending and growth in the housing market. Consumer spending grew 3.2 percent in the first quarter, with substantial growth in the area of durable goods, such as furniture, appliances and other big-ticket items. Worth noted that these durable goods are often purchased on credit. Residential home building rose for the eighth straight quarter and home sales rose to their highest levels since mid-2007. 

Worth also reported that overall payroll jobs grew by 165,000 in April and the unemployment rate in the first quarter improved a little more than expected. However, he noted that many analysts think that the employment will slow in the second half of the year.

What are the underlying reasons for these numbers? What does this moderate growth mean for interest rates? What what does this economic news mean for credit unions? Click here to hear what he has to say.