(Reuters) – U.S. banks saw weaker demand for a key category of business loans during the third quarter, while the demand picture for consumer credit card and auto loans also softened, according to a Federal Reserve survey out on Tuesday that showed the Fed’s pivot to lower interest rates has yet to improve credit demand.
The net share of banks seeing stronger demand for commercial and industrial loans from large and medium business clients during the third quarter fell to negative 21.3% from zero in the second quarter and from small firms slid to negative 18.6% from zero, according to the Fed’s quarterly Senior Loan Officer Opinion Survey, or SLOOS.
On the consumer front, the net share of banks reporting stronger demand for credit card loans fell to negative 2.1% from a positive 2.0% in the second quarter. For auto loans it fell to minus 12.8% from minus 10.4%.