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CREDIT DEMAND UP, TERMS/AVAILABILITY WORSEN

20 May 2009 by Cullen Roche 2 Comments

Markit research is out with the results of their latest credit conditions survey.   The results show an increased need for credit in all major economies, but a continuing lack of availability.  1 in 10 firms report business constraints due to a lack of credit.  Credit terms have tightened in every country except China and Germany.  Spain and Russia are particularly weak.

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Chris Williamson, Chief Economist at Market said:

“While surveys such as the PMI’s sugges the worst of the recession is over, a doubling in the number of companies reporting that their business is constrained by a lack of available credit over the past year to one-in-ten provides a timely reminder that bank lending remains a problem and is likely to subdue in many countries.”

Source: www.markit.com

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