JP Morgan: Small US businesses are less optimistic

JP Morgan: Small US businesses are less optimistic

May 15, 2023

United States
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Demand for business loans is declining according to lending surveys.

In the recent Q2 US Senior Loan Officer Opinion Survey, over half of banks reported weaker demand for commercial and industrial loans from both small and large firms. The number of small businesses reporting they are planning capital expenditure has also fallen, to nearly a 10-year low.

Such declines in loan demand and investment intentions have tended to precede recessions. However, small business hiring intentions, while falling, remain relatively strong and well above previous recessionary levels. The key question is therefore whether still high hiring intentions follow investment plans lower, as they have done in the past.

15052023 JP Morgan

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