Based on the American Bankers Association's latest Credit Conditions Index released this week, U.S. bank economists expect credit conditions to weaken over the next six months.
According to the Q4 2023 report, most EAC economists believe that both credit quality and credit availability will weaken over the next six months for both consumers and businesses:
"Top bank economists serving on our Economic Advisory Committee are forecasting weak growth in household spending and business investment over the next four quarters before a modest pickup in the second half of next year," said ABA Chief Economist Sayee Srinivasan. "Accordingly, ABA's latest Credit Conditions Index indicates that banks will continue to exercise greater caution in lending decisions until at least the end of the year."
Fourth Quarter Highlights