More than half of lenders nationwide believe a US invasion of Iraq would have a negative impact on the US economy, and 67 percent predict that consumer spending would drop if war breaks out, according to the results of the latest Phoenix Management Lending Climate in America survey.
However, only one out of five lenders believes that invading Iraq would send the economy back into a recession. Sixty percent of lenders said that oil prices would climb to $40 or more per barrel, if war broke out.
Lenders do not expect the economy to experience any noticeable improvement until the second half of 2003. They predicted the economy would perform at a C- level for the first six months of 2003, before rising to a C / C+ level during the second half of the year.
The Phoenix Management Lending Climate in America Survey is conducted quarterly to gauge shifts in lenders' attitudes toward the economy. Lenders from commercial banks, commercial finance companies and factors across the country are surveyed each quarter.
Phoenix Management Services is a Philadelphia-based turnaround management firm that assists companies encountering financial, operational or management difficulties. It has successfully managed 500 turnarounds since its founding in 1985. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
