Fed: Business lending up, amount of jobs added declines

1/31/2012

A recent poll from the U.S. Federal Reserve of loan officers at 56 domestic banks revealed that demand for business loans increased in the fourth quarter of 2011, Bloomberg reports.

Conducted between December 21 and January 10, researchers found that 17 banks noted stronger demand among companies with $50 million or more in annual sales, while six reported weaker demand. Furthermore, the level of pursuit for business loans increased during that time period the most of any quarter since 2005.

However, despite the positive momentum, the report found that lending standards and demand for loans for real estate purchases were "little changed."

Also, it's expected the economy will add around 145,000 jobs in January - down from a gain of 200,000 in December. This may be due primarily to a lessened necessity for part-time or temporary seasonal jobs, given the fact that the holiday season has passed.

The news source also expects that, even with the dip in jobs, the national unemployment rate is likely to remain unchanged at 8.5 percent.