Daily News: April 9, 2013

Phoenix Survey: Lenders’ Expectations Turn Positive

Phoenix Management said results from its Q1 “Lending Climate in America” Survey show that lenders have shifted lending expectations from negative to positive.

When asked about domestic lending, 48% of lenders feel that it will increase in the coming months versus 18% in the 4th quarter. This is a big turnaround for a category that has been declining over the previous nine months.

Lenders have also shifted in their thinking about how their customers will behave. 56% of lenders believe that their customers will introduce a new product or service, 44% believe their clients will make new capital investments, 42% of lenders expect their customers to start making acquisitions and 35% anticipate their clients will enter new markets within the next 6 months.

“It’s great to see such an optimistic outlook from lenders,” says Michael Jacoby, Phoenix senior managing director and shareholder. “We’ve seen the lending market heating up and the survey results just confirm what we are experiencing.”

The survey also found that lenders have shifted their view towards risk factors affecting the economy. While 61% feel that the U.S. Budget Deficit is the largest factor, it is a large decrease from 80% in the previous quarter. Conversely, Unstable Energy Prices was chosen by 59% of lenders (as compared to only 25% in the 4th quarter).

To see the full results of Phoenix’s “Lending Climate in America” Survey, click here.