From the first quarter Phoenix Management “Lending Climate in America” Survey, results show that lenders have shifted lending expectations from negative to positive.

When asked about domestic lending, 48% of lenders feel that it will increase in the coming months versus 18% in the 4th quarter. This is a big turnaround for a category that has been declining over the previous nine months.

Lenders have also shifted in their thinking about how their customers will behave. 56% of lenders believe that their customers will introduce a new product or service, 44% believe their clients will make new capital investments, 42% of lenders expect their customers to start making acquisitions and 35% anticipate their clients will enter new markets within the next 6 months.

“It’s great to see such an optimistic outlook from lenders,” says Michael Jacoby, Phoenix Senior Managing Director and Shareholder. “We’ve seen the lending market heating up and the survey results just confirm what we are experiencing.”

The survey also found that lenders have shifted their view towards risk factors affecting the economy. While 61% feel that the US Budget Deficit is the largest factor, it is a large decrease from 80% in the previous quarter. Conversely, Unstable Energy Prices was chosen by 59% of lenders (as compared to only 25% in the 4th quarter).

View the full results of Phoenix’s “Lending Climate in America” Survey.

For more than 25 years, Phoenix has provided smarter, operationally focused solutions for middle market companies in transition. Phoenix Management Services® provides turnaround, crisis and interim management, specialized advisory and operational due diligence services for both distressed and growth oriented companies. 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.