Fed's Senior Loan Officer Survey indicated weaker demand for business loans
Fed's Senior Loan Officer Survey indicated weaker demand for business loans in Q3, consistent with the slowing in the economy and as trade war fears weighed on capex. Lending standards for business loans were generally unchanged. On the other hand, there was stronger demand for consumer loans (including credit cards), as well as residential real estate loans given the drop in mortgage rates boosted activity. Here, banks tightened their standards on credit cards, and said they were less likely than a year ago to approve new credit card or auto loans with borrowers with a score of 620, given a more uncertain economic outlook and increased worries about borrower's ability to repay. Analysts don't believe the tightening in consumer loans will significantly impact holiday spending.