Business executives in the manufacturing and services sector in the New York Fed district said access to credit was flat in May compared to the past three months, but a number of them expected more difficult times.
The bank said in its latest survey of business leaders for the month of May on Tuesday that 20% of business leaders in manufacturing and factories said they found credit more difficult to obtain in the past. past three months, which the bank says is similar to what was seen in the previous quarter.
But looking ahead, about 30% of respondents expect access to credit to get worse, and very few survey respondents believe credit will improve.
“When those reporting worsening conditions were asked what specific factors had deteriorated over the past three months, the most commonly cited factor was interest rates on new loans and loans ongoing,” the report said, linking the challenges to central bank rate hikes.
Manufacturing companies said they would face tougher credit by adjusting wages or salaries, while companies in the services sector said they would meet the challenges by changing their prices.
The bank also said that in May, the activity index of its survey of business leaders fell seven points from April to -16.8. The business climate index changed little, standing at -45.8 in May.
2023-05-16 13:30:35
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