Finance

The outlook for the financial services industry is linked directly to the economy and more specifically to the financial well-being of consumers and businesses. On a global scale, the past year has been challenging for everyone.
The impact of consumer confidence during this recession has been significant. Consumers are concerned about employment and the value of their homes and retirement savings. As a result, they are buying less and saving more. In the long-term, this de-leveraging of a consumer's personal balance sheet is good for their financial well-being, but in the short-term it puts further downward pressure on the economy.
Alaska's economy has only recently been affected by the global recession. Unemployment is up slightly as tourism, retail trade and the construction industries struggle from the effects of national trends. Alaska's oil- and government-based economy has sustained Alaska during this period and provided for a relatively high level of consumer confidence. As a result, the financial services industry has performed well during the recession and is expected to continue to do so.
In Alaska, consumer loan demand is down less than 10 percent and delinquency is within normal ranges.

Source: Bill Eckhardt, Alaska USA Federal Credit Union, ABM Industry Outlook, Jan. 2010