SFNet Releases Q4 2023 Market Pulse

Key findings include:

• Q3 showed continued economic growth with the GDP expanding by 5.2%, with much of the growth driven by consumer spending.  At the same time, one of the consumer-oriented Recession Monitor factors went from green to yellow territory.  The Consumer Confidence divided by the Unemployment Rate is a relatively short-term leading indicator, suggesting that we should continue to keep a close eye on consumer behavior.
• With this as a backdrop, the secured finance industry continued to hold steady in total commitments with a modest 0.2% growth in Q3 relative to Q2 while portfolios remain healthy with non-accruals as a percent of outstandings showing a decline quarter over quarter.  While conditions remain stable, forward sentiment is negative with a decline in Portfolio Performance and General Business conditions expected, suggesting that winter may in fact be coming.

Click here to access the report.