Banking executives in Wisconsin have been happy to state that they are expecting both loan growth and an improved economy. Out of the 101 banking executives that were polled in the first couple weeks of June, around ten percent of them stated that they considered the state of Wisconsin to be in excellent condition. However, seventy-five percent of them that were polled thought the state’s economy was in only good condition. As compared to last year’s poll, only one percent thought that the economy was in excellent condition and seventy-five percent still thought the economy was in good condition as well.
Polls Reveal Future Expectations
During the poll, it was found that during the next six months, almost thirty-seven percent of the bankers were sure that the economy was going to grow. This was up from around thirty-one percent of the bankers who thought the economy was going to grow in the next six months in the previous year. Around sixty-two percent of the bankers agreed that the economy looked as though it was going to remain the same. Alternately, only one percent of the bankers asked during the polls thought that the economy was going to decline in the next six months.
In June of the previous year, fifty-two percent of the executive bankers rated that they believed the demand for loans in commercial real estate was going to be good or excellent. This year, sixty-eight percent of the bankers polled in the survey now believe the same. They also saw that there was to be a higher demand for loans for business ventures. However, the survey has shown that the amount of home loans did slow down a bit in the second half of the year. Only around twenty-four percent of the bankers who were surveyed in the poll expected that mortgage loans were going to increase over the next half year. This estimate was lower than the previous estimate of thirty-percent the previous year. This was the expected growth for real estate residential loans for the second half of the year during 2016.
The survey referred to as the Bank CEO Economics Conditions poll is taken each year during both June and December. The trends from these surveys have proven to be right on target in past years. During the December survey, the bank executives had predicted that the growth in the economy for the state was going to be steady in most categories through the first half of the next year. They were correct about the growth in loans as well as the steady rise in the economy.
The chief executive and president of the Wisconsin Bankers Association has stated in the past that Wisconsin bankers are known to have unique perspectives on the economy as a whole. This is because they are able to understand the economic trends happening in Wisconsin and then use the information from those trends to help communities within the state prosper. Loan demands in Wisconsin have been steady and “healthy” over the last couple of years.
If the economy continues to show steady growth, the banks will begin to hire more employees. Forty-eight percent of those bank executives that were surveyed said that they expected to hire more employees in their branches over the next half year. This was an increase of over thirty percent from the amount of executives who said they expected to hire more in six months the previous year.
The loan demands in agriculture was only seen as fair throughout fifty-six percent of the executive bankers. Many farmers in Wisconsin are in a “maintain and sustain” mode currently. Farming is a very cyclical industry. The more in-demand that loans are for every area, the better the economy is looking. However, while the economy is growing and getting better, it doesn’t always guarantee the rise in jobs or loans being offered.