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Strengthening economy might lead to additional borrowing

Jul 29, 2013 Philip Burgess

The U.S. economy has been a bit of a roller coaster ride in the past couple years, but a recent survey revealed business economists have a brighter outlook on the future. Should growth begin to accelerate, demand for short term lending might pick up as consumers start to spend and borrow more.

Nearly 75 percent of economists forecast economic growth of 2.1 percent or more in the next year, which is up from about 66 percent in the previous survey, according to the National Association for Business Economics.

Hiring prospects look good as well, with one-third of respondents revealing that their companies added jobs in the second quarter - the highest percentage in nearly two years.

As the economy improves, Americans have been showing more confidence in the employment situation - another positive sign for the economy. One in four consumers believe now is a good time to find a quality job, up from 17 percent the same time a year ago, Gallup noted.

Should this confidence among consumers and economists continue, there is likely to be a pick up in spending and borrowing in the near future.