PHILADELPHIA, Dec. 09, 2021 (GLOBE NEWSWIRE) -- From the fourth quarter Phoenix Management “Lending Climate in America” survey results reveals supply chain constraints are the biggest concern for the U.S economy as we enter 2022.
COVID-19 has amplified the carrier shortage causing major supply chain issues. There is concern that the holiday season will worsen the economic situation. The majority of lenders, 71%, believe supply chain disruptions will lead to lower consumer spending and delay economic recovery. Twenty-nine percent of lenders believe as consumers learn to navigate this post-pandemic environment, holiday spending will keep the economic recovery constant to offset the supply-chain impact.
Phoenix’s Q4 2021 “Lending Climate in America” survey asked lenders what they expect to be the biggest challenge for borrowers heading into 2022. Half of the lenders surveyed, 50%, believe supply chain constraints will be the biggest challenge that borrowers will face heading into 2022. Of the lenders surveyed, forty-three percent cited labor costs as a concern, while none predicted COVID-19-related constraints to be a challenge.
In Q3/21, real GDP dropped to an annual increase of 2%. According to economists, the third quarter’s low GDP was not due to a lack of consumer spending but rather a lack of supply. When asked, how do you believe the Fed will respond in respect to interest rates, 79% of lenders believe the Fed will increase interest rates after Q1 2022. Twenty-one percent of lenders believe the Fed will hold rates through 2021 and begin increasing in Q1 2022.
In Q4/21, lenders’ optimism in the U.S. economy in the next six months decreased slightly. The GPA for the U.S. economy in the near-term decreased to 2.21 from the Q3 2021 results of 2.23. While there was a decrease in near-term optimism, long-term optimism increased by 13 percentage points to 2.36 from the previous quarter’s results of 2.23.
“Supply chain constraints appears to be the biggest concern for lenders and the U.S. economy throughout the holiday season and into 2022,” says Michael Jacoby, Senior Managing Director and Shareholder of Phoenix. “With potential disruptions due to shortages, the majority of lenders believe it will lower consumer spending and negatively impact economic recovery in the near-term.”
To see the full results of Phoenix’s “Lending Climate in America” Survey, please visit https://www.phoenixmanagement.com/lending-survey/
About Phoenix:
For 35 years, Phoenix has provided smarter, operationally focused solutions for middle market companies in transition. Phoenix Management Services® provides turnaround, crisis and interim management, and specialized advisory for both distressed and growth-oriented companies. Phoenix Transaction Advisory Services® provides quality of earnings, operational diligence, Quality of Enterprise®, business integration, sell-side business preparation, and other transaction related support. Phoenix Capital Resources® provides seamless investment banking solutions including M&A advisory, complex restructurings and capital placements. Phoenix Capital Resources is a U.S. registered broker-dealer and member of FINRA and SIPC. Proven. Results®.
If you would like to learn more about Phoenix, please visit http://www.phoenixmanagement.com/ or http://www.phoenixcapitalresources.com/
Contact: Michael Jacoby
(610) 358-4700
mjacoby@phoenixmanagement.com
