With inflation continuing to impact the US economy, lenders are focused on the economic impact of elevated interest rates. Lenders’ expectations for the US economy’s performance in the longer term – beyond the next six months – has decreased significantly from the prior quarter. With this pessimistic outlook comes an expectation of an eventual reduction in the federal funds rate, which will facilitate businesses to raise additional capital or enter new markets.
In the Phoenix Management “Lending Climate in America” survey for Q2 2024, the lenders queried identify which macroeconomic factor concerns them the most, and which actions their customers have planned in the next six to twelve months. The survey also reveals whether lenders’ financial institutions plan to tighten, relax, or maintain their loan structures, how much growth their customers expect in 2024, and which industries are likely to experience the most volatility in the upcoming six months.
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