Terrorist attacks push economy into recession, with recovery at least a year away, lenders say

Three months ago, most lenders thought the sluggish economy was likely to experience a recovery during the first half of 2002. Those optimistic thoughts were dashed on September 11, according to the results of the most recent Phoenix Lending Survey. The terrorist attacks of September 11 have pushed the economy into a full-fledged recession, and recovery is at least a year away and may not happen until 2003. Those were among the sobering results of the third-quarter lending survey results, in which 80 commercial lenders nationwide participated. In addition to lengthened expectations for recovery, the events of September 11 are likely to have an effect on borrowers, especially international borrowers and small- and mid-sized businesses.