Jul 19, 2013 Philip Burgess
In the aftermath of the Great Recession, consumers shied away from spending money, as they attempted to better their personal financial situations.
Now that the economy is improving, consumer confidence has increased, which could lead to more spending and borrowing activity.
As a result, short term lending demand could pick up, so financial institutions offering this type financing should be prepared.
One indicator that consumers feel good about the economy is Gallup's U.S. Economic Confidence Index, which remained at minus-9 for the week ending July 7. While this may not seem high, this index stood at minus-52 in late 2011.
Additionally, the Thomson Reuters/University of Michigan Index of Consumer Sentiment was at a high level at the end of June, proving that consumers are confident in the direction of the economy.
"Consumers now believe the recovery has achieved an upward momentum that will not easily be reversed," said Surveys of Consumers Chief Economist Richard Curtin.
With Americans showing high levels of confidence in the U.S. economy, short term lenders should prepare employees for an influx of applications so they are better able to handle requests for financing.