One of the grimmer aspects of the recent recession was the tightening credit markets. Businesses that wanted to borrow to expand, and therefore increase employment, often found they couldn’t secure funding. A new Lending Climate Survey from Phoenix Management shows that businesses are encountering a friendlier environment this year, a trend which should lead to increased marketing expenditures.
The following numbers of banks say they see the commercial lending market increasing:
- Corporate lending 45%
- Middle marketing lending 48%
- Small business lending 52%
At the same time, 59% believe unemployment will continue to drop in the next 6 months and 81% believe interest rates will remain steady. These numbers contribute to increasing optimism on the part of banks, 30% of whom give the economy a B going forward, and 57% give it a C.
Nearly half, 48%, of bankers also see generate domestic lending beginning to increase, another signal of economic growth. However, they predict volatility in the retail trade, health care, and social service sectors. But, over half of lenders generally believe that their customers will be introducing new products and services this year. Other expansion signals include 35% of customers who expect to enter new markets and 44% will will make capital investments.
Businesses may be moving cautiously but they are showing signs of wanting to grow and compete, two initiatives which should drive marketing expenditures.
Is your business planning to introduce a new product or service this year?[Source: Lending Climate in America. Phoenix Management Services. 2013. Web. 15 Apr. 2013]