Surveys

Special Questions

May 28, 2024

Special Questions

For this month’s survey, Texas business executives were asked supplemental questions on credit conditions. Results below include responses from participants of all three surveys: Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey.

Texas Business Outlook Surveys

Data were collected May 14–22, and 355 Texas business executives responded to the surveys.

1. To what extent is your business having difficulty obtaining financing for desired short-term uses such as paying workers and acquiring inventories of material or supplies?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	39.1	41.8	42.6	38.1	39.4	32.9	29.2
Some difficulty	7.8	8.2	11.1	10.2	15.0	11.7	9.7
Substantial difficulty	2.1	2.6	2.7	3.7	2.2	3.0	2.9
Extreme difficulty	0.8	2.1	1.9	1.6	3.1	3.5	2.6
Not applicable–haven’t sought credit	50.3	45.4	41.8	46.5	40.3	48.9	55.6

NOTE: 349 responses.

1a. Why has your business not sought credit for short-term use?

	May '24 (percent)
We have enough funds within our business to meet our short-term needs	60.1
We do not have short-term expenses that require funding	17.6
We have an existing loan or line of credit that is sufficient to meet our short-term needs	7.8
We utilize other sources such as private funding or investment	6.2
We are waiting for the cost of credit to come down	3.1
Other	5.2

NOTES: 193 responses. This question was only posed to those answering "Not applicable" to question 1.

2. To what extent is your business having difficulty obtaining financing for desired long-term uses such as capital expenditures?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	39.6	38.1	47.0	39.1	38.0	29.5	28.2
Some difficulty	9.1	13.9	8.4	10.0	13.6	12.3	13.8
Substantial difficulty	2.3	3.6	1.6	3.7	3.3	5.5	3.4
Extreme difficulty	0.8	1.0	1.6	2.9	3.3	3.6	3.7
Not applicable–haven’t sought credit	48.2	43.3	41.4	44.3	41.8	49.2	50.9

NOTE: 348 responses.

2a. Why has your business not sought credit for long-term use?

	May '24 (percent)
We have enough funds within our business to meet our long-term needs	38.1
We do not have long-term expenses that require funding	31.3
We utilize other sources such as private funding or investment	11.9
We are waiting for the cost of credit to come down	7.4
We have an existing loan or line of credit that is sufficient to meet our long-term needs	5.7
Other	5.7

NOTES: 176 responses. This question was only posed to those answering "Not applicable " to question 2.

3. Has your firm’s production and/or sales been adversely affected by difficulty obtaining credit?

	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '19 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	0.7	1.6	1.1	1.3	1.3	5.2	4.3
Yes–somewhat	8.1	7.9	9.2	8.6	4.9	10.1	12.1
No	40.3	37.3	39.1	33.2	40.1	25.8	36.3
Not applicable–haven't had difficulty obtaining credit	13.8	13.6	8.4	12.0	8.6	10.7	9.8
Not applicable–haven't sought credit	37.2	39.6	42.3	44.9	45.1	48.2	37.5

NOTE: 347 responses.

4. Over the next six months, do you expect your firm’s production and/or sales to be adversely affected by difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	5.8	4.3
Yes–somewhat	13.6	15.6
No	27.8	36.1
Not applicable–don't expect to have difficulty obtaining credit	10.3	8.4
Not applicable–don't expect to seek credit	42.5	35.5

NOTE: 346 responses.

5. Has your firm reduced hiring and/or increased layoffs due to difficulty obtaining credit?

	Oct. '14 (percent)	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	0.7	0.0	0.8	0.5	1.0	3.9	2.9
Yes–somewhat	5.5	7.6	5.2	4.0	3.1	8.0	8.1
No	44.1	42.4	44.8	44.5	43.0	37.2	42.9
Not applicable–haven't had difficulty obtaining credit	13.6	13.2	11.1	9.1	9.3	8.3	9.3
Not applicable–haven't sought credit	36.0	36.8	38.1	41.8	43.6	42.7	36.8

NOTES: 345 responses.

6. Over the next six months, do you expect your firm to reduce hiring and/or increase layoffs due to difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	3.9	2.0
Yes–somewhat	9.4	10.6
No	35.5	42.8
Not applicable–don't expect to have difficulty obtaining credit	8.9	9.2
Not applicable–don't expect to seek credit	42.4	35.3

NOTES: 348 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Manufacturing Outlook Survey

Data were collected May 14–22, and 81 Texas manufacturers responded to the survey.

1. To what extent is your business having difficulty obtaining financing for desired short-term uses such as paying workers and acquiring inventories of material or supplies?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	52.9	51.1	48.0	47.1	49.4	42.9	39.5
Some difficulty	4.8	8.9	7.0	9.2	15.2	4.4	8.6
Substantial difficulty	1.9	6.7	6.0	4.6	1.3	1.1	3.7
Extreme difficulty	1.0	0.0	4.0	1.1	3.8	5.5	3.7
Not applicable–haven’t sought credit	39.4	33.3	35.0	37.9	30.4	46.2	44.4

NOTE: 81 responses.

1a. Why has your business not sought credit for short-term use?

	May '24 (percent)
We have enough funds within our business to meet our short-term needs	55.6
We do not have short-term expenses that require funding	27.8
We utilize other sources such as private funding or investment	8.3
We have an existing loan or line of credit that is sufficient to meet our short-term needs	5.6
We are waiting for the cost of credit to come down	0.0
Other	2.8

NOTES: 36 responses. This question was only posed to those answering "Not applicable" to question 1.

2. To what extent is your business having difficulty obtaining financing for desired long-term uses such as capital expenditures?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	49.5	51.1	60.0	51.7	45.0	36.3	38.8
Some difficulty	10.7	13.3	4.0	8.0	11.3	14.3	13.8
Substantial difficulty	1.9	6.7	3.0	1.1	2.5	3.3	2.5
Extreme difficulty	1.0	0.0	4.0	4.6	5.0	3.3	2.5
Not applicable–haven’t sought credit	36.9	28.9	29.0	34.5	36.3	42.9	42.5

NOTE: 80 responses.

2a. Why has your business not sought credit for long-term use?

	May '24 (percent)
We have enough funds within our business to meet our long-term needs	32.4
We do not have long-term expenses that require funding	29.4
We utilize other sources such as private funding or investment	14.7
We have an existing loan or line of credit that is sufficient to meet our long-term needs	11.8
We are waiting for the cost of credit to come down	5.9
Other	5.9

NOTES: 34 responses. This question was only posed to those answering "Not applicable " to question 2.

3. Has your firm’s production and/or sales been adversely affected by difficulty obtaining credit?

	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '19 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	0.0	2.7	0.9	0.9	1.9	3.3	2.5
Yes–somewhat	10.6	8.9	10.2	8.0	1.9	6.7	13.8
No	35.1	38.4	37.0	35.4	48.5	28.9	36.3
Not applicable–haven't had difficulty obtaining credit	20.2	16.1	11.1	16.8	13.6	17.8	17.5
Not applicable–haven't sought credit	34.0	33.9	40.7	38.9	34.0	43.3	30.0

NOTE: 80 responses.

4. Over the next six months, do you expect your firm’s production and/or sales to be adversely affected by difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	6.7	2.5
Yes–somewhat	11.2	16.3
No	31.5	35.0
Not applicable–don't expect to have difficulty obtaining credit	20.2	10.0
Not applicable–don't expect to seek credit	30.3	36.3

NOTE: 80 responses.

5. Has your firm reduced hiring and/or increased layoffs due to difficulty obtaining credit?

	Oct. '14 (percent)	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	0.0	0.0	0.9	0.9	0.9	3.4	2.5
Yes–somewhat	4.5	9.4	7.0	2.8	5.2	4.5	11.3
No	43.8	36.5	43.0	42.6	42.6	41.6	37.5
Not applicable–haven't had difficulty obtaining credit	21.3	18.8	13.2	12.0	13.9	18.0	12.5
Not applicable–haven't sought credit	30.3	35.4	36.0	41.7	37.4	32.6	36.3

NOTES: 80 responses.

6. Over the next six months, do you expect your firm to reduce hiring and/or increase layoffs due to difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	4.4	1.3
Yes–somewhat	5.6	12.5
No	41.1	40.0
Not applicable–don't expect to have difficulty obtaining credit	17.8	12.5
Not applicable–don't expect to seek credit	31.1	33.8

NOTES: 80 responses.

Texas Service Sector Outlook Survey

Data were collected May 14–22, and 274 Texas business executives responded to the survey.

1. To what extent is your business having difficulty obtaining financing for desired short-term uses such as paying workers and acquiring inventories of material or supplies?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	33.9	38.9	40.6	35.4	36.7	29.6	26.1
Some difficulty	8.9	8.1	12.5	10.5	14.9	14.1	10.1
Substantial difficulty	2.1	1.3	1.5	3.4	2.5	3.6	2.6
Extreme difficulty	0.7	2.7	1.1	1.7	2.8	2.9	2.2
Not applicable–haven’t sought credit	54.3	49.0	44.3	49.0	43.1	49.8	59.0

NOTE: 268 responses.

1a. Why has your business not sought credit for short-term use?

	May '24 (percent)
We have enough funds within our business to meet our short-term needs	61.1
We do not have short-term expenses that require funding	15.3
We have an existing loan or line of credit that is sufficient to meet our short-term needs	8.3
We utilize other sources such as private funding or investment	5.7
We are waiting for the cost of credit to come down	3.8
Other	5.7

NOTES: 157 responses. This question was only posed to those answering "Not applicable" to question 1.

2. To what extent is your business having difficulty obtaining financing for desired long-term uses such as capital expenditures?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	36.0	34.2	42.2	35.3	35.9	27.3	25.0
Some difficulty	8.5	14.1	10.0	10.6	14.2	11.6	13.8
Substantial difficulty	2.5	2.7	1.1	4.5	3.6	6.2	3.7
Extreme difficulty	0.7	1.3	0.7	2.4	2.8	3.6	4.1
Not applicable–haven’t sought credit	52.3	47.7	45.9	47.3	43.4	51.3	53.4

NOTE: 268 responses.

2a. Why has your business not sought credit for long-term use?

	May '24 (percent)
We have enough funds within our business to meet our long-term needs	39.4
We do not have long-term expenses that require funding	31.7
We utilize other sources such as private funding or investment	11.3
We are waiting for the cost of credit to come down	7.7
We have an existing loan or line of credit that is sufficient to meet our long-term needs	4.2
Other	5.6

NOTES: 142 responses. This question was only posed to those answering "Not applicable " to question 2.

3. Has your firm’s production and/or sales been adversely affected by difficulty obtaining credit?

	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '19 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	1.0	1.1	1.1	1.5	1.1	5.8	4.9
Yes–somewhat	6.9	7.4	8.7	8.9	6.0	11.3	11.6
No	42.6	36.8	39.9	32.2	37.0	24.7	36.3
Not applicable–haven't had difficulty obtaining credit	10.8	12.6	7.2	10.0	6.8	8.4	7.5
Not applicable–haven't sought credit	38.7	42.0	43.0	47.4	49.1	49.8	39.7

NOTE: 267 responses.

4. Over the next six months, do you expect your firm’s production and/or sales to be adversely affected by difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	5.5	4.9
Yes–somewhat	14.4	15.4
No	26.6	36.5
Not applicable–don't expect to have difficulty obtaining credit	7.0	7.9
Not applicable–don't expect to seek credit	46.5	35.3

NOTE: 266 responses.

5. Has your firm reduced hiring and/or increased layoffs due to difficulty obtaining credit?

	Oct. '14 (percent)	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	1.1	0.0	0.7	0.4	1.1	4.0	3.0
Yes–somewhat	6.0	6.8	4.4	4.5	2.2	9.1	7.2
No	44.3	45.1	45.6	45.3	43.2	35.8	44.5
Not applicable–haven't had difficulty obtaining credit	9.8	10.7	10.2	7.9	7.3	5.1	8.3
Not applicable–haven't sought credit	38.8	37.4	39.1	41.9	46.2	46.0	37.0

NOTES: 265 responses.

6. Over the next six months, do you expect your firm to reduce hiring and/or increase layoffs due to difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	3.7	2.2
Yes–somewhat	10.7	10.1
No	33.6	43.7
Not applicable–don't expect to have difficulty obtaining credit	5.9	8.2
Not applicable–don't expect to seek credit	46.1	35.8

NOTES: 268 responses.

Texas Retail Outlook Survey

Data were collected May 14–22, and 54 Texas retailers responded to the survey.

1. To what extent is your business having difficulty obtaining financing for desired short-term uses such as paying workers and acquiring inventories of material or supplies?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	32.7	54.2	36.2	44.8	50.9	28.8	35.8
Some difficulty	9.1	0.0	8.5	5.2	12.3	15.4	5.7
Substantial difficulty	1.8	0.0	0.0	6.9	1.8	1.9	0.0
Extreme difficulty	1.8	0.0	2.1	1.7	3.5	0.0	0.0
Not applicable–haven’t sought credit	54.5	45.8	53.2	41.4	31.6	53.8	58.5

NOTE: 53 responses.

1a. Why has your business not sought credit for short-term use?

	May '24 (percent)
We have enough funds within our business to meet our short-term needs	71.0
We do not have short-term expenses that require funding	12.9
We are waiting for the cost of credit to come down	6.5
We utilize other sources such as private funding or investment	6.5
We have an existing loan or line of credit that is sufficient to meet our short-term needs	0.0
Other	3.2

NOTES: 31 responses. This question was only posed to those answering "Not applicable" to question 1.

2. To what extent is your business having difficulty obtaining financing for desired long-term uses such as capital expenditures?

	Oct. '19 (percent)	Oct. '20 (percent)	Oct. '21 (percent)	Sept. '22 (percent)	Apr. '23 (percent)	Oct. '23 (percent)	May '24 (percent)
No difficulty	41.1	45.8	34.0	47.4	45.6	30.8	32.1
Some difficulty	8.9	12.5	8.5	8.8	10.5	9.6	9.4
Substantial difficulty	0.0	0.0	2.1	3.5	1.8	5.8	0.0
Extreme difficulty	0.0	0.0	2.1	3.5	1.8	0.0	0.0
Not applicable–haven’t sought credit	50.0	41.7	53.2	36.8	40.4	53.8	58.5

NOTE: 53 responses.

2a. Why has your business not sought credit for long-term use?

	May '24 (percent)
We have enough funds within our business to meet our long-term needs	48.4
We do not have long-term expenses that require funding	19.4
We are waiting for the cost of credit to come down	16.1
We have an existing loan or line of credit that is sufficient to meet our long-term needs	6.5
We utilize other sources such as private funding or investment	6.5
Other	3.2

NOTES: 31 responses. This question was only posed to those answering "Not applicable " to question 2.

3. Has your firm’s production and/or sales been adversely affected by difficulty obtaining credit?

	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '19 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	0.0	0.0	0.0	0.0	0.0	3.8	1.9
Yes–somewhat	6.8	5.4	8.9	7.0	8.9	15.4	11.3
No	56.8	46.4	41.1	40.4	39.3	23.1	41.5
Not applicable–haven't had difficulty obtaining credit	11.4	17.9	10.7	8.8	8.9	9.6	1.9
Not applicable–haven't sought credit	25.0	30.4	39.3	43.9	42.9	48.1	43.4

NOTE: 53 responses.

4. Over the next six months, do you expect your firm’s production and/or sales to be adversely affected by difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	4.0	5.8
Yes–somewhat	14.0	13.5
No	28.0	34.6
Not applicable–don't expect to have difficulty obtaining credit	10.0	3.8
Not applicable–don't expect to seek credit	44.0	42.3

NOTE: 52 responses.

5. Has your firm reduced hiring and/or increased layoffs due to difficulty obtaining credit?

	Oct. '14 (percent)	Oct. '15 (percent)	Oct. '16 (percent)	Oct. '17 (percent)	Oct. '18 (percent)	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	0.0	0.0	0.0	0.0	0.0	2.0	1.9
Yes–somewhat	8.5	8.9	3.4	3.5	3.4	9.8	0.0
No	57.4	53.3	55.2	49.1	48.3	37.3	50.0
Not applicable–haven't had difficulty obtaining credit	12.8	13.3	12.1	8.8	5.2	5.9	3.8
Not applicable–haven't sought credit	21.3	24.4	29.3	38.6	43.1	45.1	44.2

NOTES: 52 responses.

6. Over the next six months, do you expect your firm to reduce hiring and/or increase layoffs due to difficulty obtaining credit?

	Oct. '23 (percent)	May '24 (percent)
Yes–significantly	2.0	1.9
Yes–somewhat	10.0	7.5
No	36.0	45.3
Not applicable–don't expect to have difficulty obtaining credit	6.0	5.7
Not applicable–don't expect to seek credit	46.0	39.6

NOTES: 53 responses.

Special Questions Comments

These comments have been edited for publication.

Texas Manufacturing Outlook Survey

Food manufacturing

We have a good credit situation right now. No issues on the side of our customers at this point, as far as we can tell.

Machinery manufacturing

We're blessed to operate largely debt free, so credit is generally not a major concern for us.

Transportation equipment manufacturing

Our company has no debt. We pay cash for all equipment.

Texas Service Sector Outlook Survey

Data processing, hosting and related services

Reducing regulations should help financial institutions lower costs and increase credit availability for borrowers.

Credit intermediation and related activities

We do not regard borrowing as a magic carpet to profit. Our focus is on retaining our best people. Our taking on debt will not get the economy out of this inflationary malaise.
We have been fortunate with our ability to hire individuals with different skill sets and varying education backgrounds. Typically, the attrition we witness is primarily in the younger recruits for various reasons. The most common are relocation and expanding the family units.

Real estate

Debt and equity financing for development of commercial and multifamily projects is only rarely available.

Rental and leasing services

We are actually adding people pretty aggressively to grow our company. Most of the time we sit on $80 million to $100 million in cash, so credit is not an issue at this point except getting retail credit for our customers to buy equipment from us.

Professional, scientific and technical services

Our bank told us “no” on increasing our line of credit from $100,000, even though we are very profitable and have revenue of $6 million. Based on the CD [certificate of deposit] rates and time frames, I think they're desperate for cash on a short-term basis.
Revenue and the market are impacting the business overall.
In the last five years, we have tried to become self-financed. We have reduced our debt to the lowest level it has been since the company was founded. We should have all of our debt paid off by the end of the year. We try not to use debt to grow the business.
Many of the major contract solicitations were delayed in 2023, though several major contracts such as the Department of Veterans Affairs and the Department of Homeland Security will be awarded in 2024. The middle market and small businesses fortunate enough to be on a winning team must be ready with funding to accept task orders.
In the past six to 12 months, I have used credit card lines to cover expenses due to extremely slow payment of invoices.

Administrative and support services

We have not felt any impact from credit or financing issues, but various clients are reporting significant difficulties.

Educational services

As a state institution, we only seek long-term funding in the bond market, and we are not currently seeking funding for new projects at this time.

Ambulatory health care services

The credit crunch does not impact our ability to secure credit; rather, it impacts our patients who need financing to pay for our cosmetic dental treatments. So, this is an indirect impact but potentially more significant to overall profitability as it drags on.

Food services and drinking places

We are a debt-free company and have great relationships with bankers.
We have two projects on the table. We are not borrowing to do these projects because the interest rate is so high. It will limit what I feel I can do as far as new projects.

Texas Retail Outlook Survey

Building material and garden equipment and supplies dealers

I pay cash for everything. I keep $50 million to $60 million in cash.

Merchant wholesalers, durable goods

We worked in April and May to increase our credit line by about 30 percent. The bank we have been working with did not have an issue extending more credit to us, as our sales have remained strong this year.

Questions regarding the Texas Business Outlook Surveys can be addressed to Emily Kerr at emily.kerr@dal.frb.org.