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.
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.”