Connecticut businesses observed slight improvements in credit conditions in the fourth quarter compared to a year ago, according to a survey by the Connecticut Business and Industry Association and Farmington Bank.
The Farmington Bank Credit Availability Index registered a reading of 38.8 in the recent quarter. That was down from 51.4 in the third quarter, but up from a reading of 30 in the fourth quarter of 2012, which at the time represented a two-year high.
“While conditions are not ideal, the credit spigot is open for businesses,” Peter Gioia, CBIA’s chief economist, said in a statement.
More businesses said they had used financing in the fourth quarter — 38 percent compared to 31 percent a year ago — yet opinions about future credit conditions were more negative than positive.
Of the 204 businesses that responded to the survey, 27 percent felt conditions would deteriorate over the next three months, while 18 percent felt they would improve. More than half expect conditions to remain the same.
The most common use cited for potential financing was plant and equipment investments, followed by maintaining workforce size.
Manufacturers were the most represented industry group in the survey, with more than 80 responses. The most common workforce size for those that responded was 10 to 49 employees.
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