Discover Spending Monitor Report for Credit Unions (April 2012)

CONSUMER CONFIDENCE CONTINUES TO RISE AMONG CREDIT UNION MEMBERS, ACCORDING TO DISCOVER® U.S. SPENDING MONITORSMRiverwoods, IL, May 14, 2012 – Credit union members’ attitudes about the economy continuedto improve during the past quarter and are better than they were a year ago, according to datareleased today from the credit union member demographic of the Discover U.S. SpendingMonitor.Economic Conditions Improving for Credit Union MembersCredit union members who rate the U.S. economy as “good” or “excellent” doubled to 18percent in April compared to a year earlier. Credit union members have more positive attitudesabout the economy than non-credit union members with just 14 percent of non-credit unionmembers rating the economy as “good” or “excellent.” In addition, 47 percent of credit unionmembers rate the economy as “poor,” a decrease of 9 percentage points from a year earlier.The number of credit union members who believe the economy is getting better jumped in thelast year, with 37 percent of respondents reporting that the economy is improving. That is 11percentage points higher than a year ago.. At the same time, only 44 percent of credit unionmembers believe the economy is getting worse, compared to 50 percent of non-credit unionmembers.Views of Personal Finances Also ImproveIn line with the favorable views of the economy, the survey found that 42 percent of credit unionmembers rated their personal finances as “good” or “excellent” in April 2012, an improvementof 4 percentage points from April 2011. This compares to 36 percent of non-credit unionmembers rating their personal finances as “good” or “excellent” in 2012.The survey also found that in April, 29 percent of credit union members felt their finances weregetting better, an improvement of 7 percentage points from the same time period last year.Additionally, 55 percent of credit union members reported that they would maintain their rate ofsavings next month, an increase of 6 percentage points from the year earlier. Of non-credit unionmembers, 48 percent reported they would have the same rate of saving.More Money Available, but Discretionary Spending Remains SteadyCredit union members who expect to have money left after paying their bills increased 3percentage points, from 51 percent in April 2011 to 54 percent in April 2012. Similarly, thenumber of credit union members who plan to spend more on household expenses in the comingmonth fell to 45 percent, compared to 61 percent who reported they would have higher expensesin May 2011.

Without an increase of household expenses, such as groceries and gasoline, there was a declinefor those planning to spend less on discretionary expenses. For example:  In April 2012, 42 percent of credit union members plan to spend less on discretionary entertainment spending in the next month, compared with 53 percent in April 2011.  Those planning to spend less on home improvements in the next month also declined 5 percentage points, from 47 percent in April 2011 to 42 percent in April 2012. Those who planned to increase spending on home improvement rose 1 percentage point, to 20 percent, compared to a year ago.  Intentions to spend less on a major personal purchase in the next month declined as well by 6 percentage points, to 41 percent, versus 47 percent in the same time period last year.The findings among credit union members are part of the Discover U.S. Spending Monitor,which polls more than 8,200 consumers each month. Beginning in June 2010, the survey askedparticipants to indicate if they were members of a credit union. Of those polled each month, onaverage 2,500 are credit union members. For more Discover U.S. Spending Monitor survey data,charts and information, please visit www.discoverfinancial.com/surveys/spending.shtml.About Discover U.S. Spending MonitorThe Discover® U.S. Spending MonitorSM is a monthly index of consumer spending intentionsand capacity that is based on interviews with a random sample of 8,200 U.S. adults conducted ata rate of 275 per night. In addition to spending, the survey asks consumers their opinions on theU.S. economy and their personal finances. Beginning in June 2010, the survey asked consumersto indicate if they were members of a credit union. Of those polled, between 2,000 and 3,300each month are credit union members. Findings for the credit union member demographic arereleased quarterly. The Monitor began in May 2007 with a base index of 100. Surveys areconducted by Rasmussen Reports, an independent survey research firm(www.rasmussenreports.com).About DiscoverDiscover Financial Services (NYSE: DFS) is a direct banking and payment services companywith one of the most recognized brands in U.S. financial services. Since its inception in 1986, thecompany has become one of the largest card issuers in the United States. The company operatesthe Discover card, Americas cash rewards pioneer, and offers personal and student loans, onlinesavings accounts, certificates of deposit and money market accounts through its DiscoverBank subsidiary. Its payment businesses consist of Discover Network, with millions of merchantand cash access locations; PULSE, one of the nations leading ATM/debit networks; and DinersClub International, a global payments network with acceptance in more than 185 countries andterritories. For more information, visitwww.discoverfinancial.com.

Discover Spending Monitor Report for Credit Unions (April 2012)

by NAFCU Services Corporation on Jul 10, 2012

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Discover Spending Monitor Report for Credit Unions (April 2012) Document Transcript