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Credit Constraint Indicator Falls to New Historic Low

Summary:
Credit Constraint Indicator - From the Ifo Business Survey for August 2015 Aug 28, 2015 German companies have fewer problems financing themselves with money from the banks. The credit constraint indicator for industry and trade in Germany fell to 15.0 percent in August, after 15.4 percent in the previous month. This is a new historic low. With the huge amounts of money pumped into the banks, the ECB is enticing them to an unprecedented nonchalance in lending. In manufacturing the credit constraint fell to 12.7 percent. The percentage of companies that reported problems in borrowing from the banks fell for large firms (from 9.5 to 8.5 percent) as well as for small businesses (from 18.8 to 16.5 percent). For mid-size companies, the share of those reporting problems increased slightly to 13.2 percent. In construction credit constraints fell to 18.1 percent. In distribution, however, they rose slightly to 16.2 percent.

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Credit Constraint Indicator - From the Ifo Business Survey for August 2015

Aug 28, 2015

German companies have fewer problems financing themselves with money from the banks. The credit constraint indicator for industry and trade in Germany fell to 15.0 percent in August, after 15.4 percent in the previous month. This is a new historic low. With the huge amounts of money pumped into the banks, the ECB is enticing them to an unprecedented nonchalance in lending.

In manufacturing the credit constraint fell to 12.7 percent. The percentage of companies that reported problems in borrowing from the banks fell for large firms (from 9.5 to 8.5 percent) as well as for small businesses (from 18.8 to 16.5 percent). For mid-size companies, the share of those reporting problems increased slightly to 13.2 percent.

In construction credit constraints fell to 18.1 percent. In distribution, however, they rose slightly to 16.2 percent.

Hans-Werner Sinn
Präsident des ifo Instituts a.D., Professor für Nationalökonomie und Finanzwissenschaft an der Universität München Impressum: http://www.hanswernersinn.de/de/impressum

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