Various surveys of firms suggest clear improvement in both the lending stances of financial institutions as perceived by firms and in firms’ financial positions. This is in sharp contrast to the situation in Europe and the United States, where financial conditions have tightened since the summer against the backdrop of market anxiety due to the sovereign debt problem in Europe.
And, through February, backlogs of orders for nondefense capital goods were still moving up. Another important factor in the outlook for the United States is the likelihood of a continued solid expansion in economic activity abroad.