- Key insight: A new survey of consumer credit companies by the American Financial Services Association found they have a negative outlook on business conditions for the first time in two years.
- What’s at stake: The downturn in expectations is likely a reflection of the potential for higher interest rates, as well as a decline in overall loan performance.
- Forward look: Inflation and the unemployment rate are two important factors to watch, observers said.
Consumer credit firms’ outlook for business conditions deteriorated during the second quarter, reflecting a reversal in interest rate expectations, as well as a sharp decline in overall loan performance, according to a recent survey of finance lenders.
