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April 5, 2018
Philadelphia, PA (April 5, 2018) —- From the first quarter Phoenix Management “Lending Climate in America” Survey, results shows a positive outlook for the U.S. economy and modest growth for the U.S. equity markets.
Lenders’ confidence on how they expect the U.S. economy to perform during the next six months continues to remain at an overall ‘B’ grade. While lenders are still optimistic about the U.S. economy in the near term, the grade point average for the U.S. economy saw a slight decrease of 5 percentage points, with a GPA of 2.74 in Q1 2018 from 2.79 in Q4 2017. On the contrary, the GPA for the U.S. economy beyond the next six months saw a slight increase of 5 percentage points to 2.47 from the Q4 2017 results of 2.42.
Furthermore, lenders were surveyed on how they expect the U.S. equity markets to perform in 2018 after such impressive, double-digit growth in 2017. Of the lenders surveyed, sixty-seven percent expect modest, single digit growth, while twenty-one percent of lenders expect markets to remain flat in 2018.
In addition, lenders were surveyed regarding their customers’ future plans and growth expectations over the next six to twelve months. Eighty-one percent of respondents expect their customers to make capital improvements, while sixty-two percent of lenders surveyed expect their customer to make an acquisition. While most of the lenders, 68%, expect moderate growth from their customers, 32% expect strong growth from their customers over the next six to twelve months.
Lenders were also surveyed this quarter on what they expect to be the biggest driver of new loans in Q2 2018. Thirty-three percent of lenders expect M&A activity to be the biggest driver of new loans, while twenty-nine percent of lenders expect working capital to support organic growth and expansion to be the driver of new loans in Q2 2018.
Lenders’ confidence in the health of the U.S. economy continues to remain at an overall ‘B’ grade which is a positive indication for continued growth and momentum throughout 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.®
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