January 11, 2018

Phoenix Lending Survey Results Shows a Positive Outlook for the U.S. Economy in the Near Term

Philadelphia, PA (January 11, 2018) —- From the fourth quarter Phoenix Management “Lending Climate in America” Survey, results shows a positive and optimistic outlook for the U.S. economy in the near term.

Lenders’ confidence on how they expect the U.S. economy to perform during the next six months increased significantly, thirty-six points, with a grade point average of 2.79 in Q4 2017 up from 2.43 in Q3 2017. Lenders’ expectations on how they believe the U.S. economy will perform during the next 6 months represents the highest GPA in the history of the Phoenix “Lending Climate in America” survey. The GPA for the U.S. economy beyond the next 6 months decreased slightly to 2.42 from the Q3 2017 results of 2.52.

Furthermore, lenders were surveyed on the financial metrics they expect the Trump Administration to focus heavily on over the next year(s) as it nears it first anniversary. Of the lenders surveyed, fifty percent expect the Trump Administration to focus heavily on GDP expansion in the coming year(s), while twenty-seven percent of lenders expect jobs growth will be the financial metric the Trump Administration will focus most heavily on.

In addition, lenders were surveyed regarding the economic factors they believe will have the strongest potential to affect the near-term economy. Fifty percent of respondents believe U.S. budget deficit will have the strongest impact on the economy in the next six months, while thirty-eight percent of lenders surveyed believe that the stability of the stock market will have the strongest potential to affect the U.S. economy in the near-term.

While lenders believe the U.S. budget deficit will be the strongest potential to affect the near-term economy, only 12% of the lenders surveyed believe the Federal deficit will benefit the most from the Trump Administration’s new tax plan. Of lenders surveyed (38%) believe that GDP expansion will benefit the most from the new tax plan, and 26% of lenders believe personal income growth will benefit most.

“This quarter’s results showed a near term GPA grade of 2.79 which represents an overall ‘B’ grade and the highest GPA in the history of the firm’s “Lending Climate in America” survey. Lenders confidence in the health of the U.S. economy in the near term significantly increased which is a positive indication for continued growth and improvement of the U.S. economy as we enter 2018,” says Michael Jacoby, Senior Managing Director and Shareholder of Phoenix.

Click here to view the full results of Phoenix’s “Lending Climate in America” Survey.

About Phoenix:

For over 30 years, Phoenix has been effectively implementing operationally focused business solutions for middle-market companies across all economic situations. Our three service groups work together as stabilizing pillars to deliver creative solutions to unique business challenges. Phoenix Management Services® provides turnaround, crisis and interim management, specialized advisory and operational implementation services for both distressed and growth oriented companies. Phoenix Transaction Advisory Services® provides quality of earnings review, management/organizational review, business integration, sell-side business preparation and other transaction related support. Phoenix Capital Resources® provides special situation banking solutions including M&A advisory, private placements of debt and equity, and complex balance sheet restructurings. Phoenix Capital Resources is a U.S. registered broker-dealer and member of FINRA and SIPC. Proven. Results.®