A plurality of U.S. lenders said business conditions worsened in the first quarter of 2024.
That's according to a survey released today by the American Financial Services Association (AFSA) as part of the rollout of the group's Consumer Credit Conditions (C3) index.
"The C3 Index provides consumer-facing businesses with the perspectives of those who put money in the pockets of households that spend that money on groceries, clothing, school supplies, home repairs, vacations, just about everything," said AFSA President and CEO Bill Himpler. "Tax Day this week was a reminder of the many expenses consumers face and the stress that consumers and credit providers alike experience with economic uncertainty and regulatory hostility."
Conducted through a survey encompassing major players in mortgage, vehicle finance, personal installment, and credit card sectors, the report sheds light on prevailing business sentiments and future outlooks within the industry.
The survey found that 38.6% of lenders said business conditions "worsened" in Q1, while only 19.3% said conditions improved. Survey respondents said that conditions worsened in every category of lending, including loans, funding costs, and performance of oustanding loans.
33.9% of lenders, however, said they expect conditions to improve during the next six months.
"The Q1 2024 survey results point to broad-based deterioration in consumer lending business conditions to start the year," said Tim Gill, AFSA's chief economist and VP for research. "It is encouraging, though, that some improvement is anticipated over the next several months as the headwinds facing the economy are expected to begin to ease."
Established in 1916, AFSA is a national trade association for the consumer credit industry in the United States. Headquartered in Washington, D.C., AFSA represents a wide range of financial services companies, including consumer and commercial finance companies, auto finance companies, mortgage lenders, credit card issuers, and industry suppliers. The association advocates for its members at both the federal and state levels, focusing on legal, regulatory, and legislative issues related to consumer credit.