Connecticut businesses are reporting modest improvement in the availability of credit in the state and are hopeful that conditions will continue improving in the coming months, according to a recent Connecticut Business & Industry Association/TD Banknorth survey.
Despite the recession, recent government actions – including the lowering of interest rates by the Federal Reserve, and the U.S. Treasury’s efforts to free up capital markets by buying troubled assets from top banks- are having a positive effect on business lending and the state’s credit environment, the survey found.
While more than a third (38 percent) of business respondents said credit conditions are fair or poor right now, more than half (53 percent) expect Connecticut’s lending climate to improve or stay the same over the next three months. That’s up from 44 percent last quarter.
The CBIA/TD Banknorth Total Credit Availability index rose to 22 in the fourth quarter of 2008, up from last quarter’s record low of 19, the lowest level since the survey began four years ago. And future credit conditions also rose to 22, up from a record low of 12 last quarter.
