Education & Events

Mixed Bag of Economic Data

By Amanda Parsons - ALM Specialist

The past week was a mixed bag of economic data.  The good: existing home sales for November rose more than expected by 7.4% from October.  Initial jobless claims are lower than expected at 452,000 claims.  This reflects the lowest level of 2009 and is a sign that the employment situation could be improving more quickly than expected.

The bad: third quarter GDP was revised downward from an initially reported 3.5% to 2.2%. While this still
indicates growth, it means we may not be recovering as anticipated. November new home sales dropped 11.3%
month-over-month, despite economists expecting an increase of 1.7%. The October data was also revised
downward from 6.2% to 1.8%. Mortgage applications for the week of December 18 were down 11.6%
from the prior week. Both of these may be attributed to the fading effects of the homebuyer tax credits.

Because this week is typically a slow week for credit unions, it's a great time to take a look at your balance sheet.
We're here to help. If you have any questions or concerns regarding your Asset Liability Management program,
please call or email us. You may reach your Corporate Account Manager at 1-800-622-7494, or you may contact
me directly at the same number, extension 3265, or aparsons@midatlanticcorp.org.