Q4 2023 Experian/Oxford Economics Main Street Report Points to Growth in 2024

Published: February 27, 2024 by Gary Stockton

Q4 2023 Experian/Oxford Economics Main Street Report

About the Main Street Report

Experian and Oxford Economics have released the Q4 2023 Main Street Report. The report brings deep insight into the overall financial well-being of the small-business landscape, as well as providing commentary around what specific trends mean for credit grantors and the small-business community. Critical factors in the Main Street Report include a combination of business credit data (credit balances, delinquency rates, utilization rates, etc.) and macroeconomic information (employment rates, income, retail sales, industrial production, etc.).

Q4 Report Highlights

As we reflect on the journey of the American economy through the last quarter of 2023 and look ahead to 2024, it’s clear that the resilience and adaptability of small businesses and consumers have been nothing short of remarkable. Despite facing challenges such as inflation and tighter lending conditions, the entrepreneurial spirit that defines Main Street has not only endured but is poised for growth.

Unwavering Consumer Confidence Spurs Economic Optimism

The U.S. economy, riding on the robustness of consumer spending, has once again demonstrated its strength. Consumers have outpaced holiday spending expectations, injecting vital liquidity into small businesses. This surge in spending has enabled these businesses to pay down debt and pivot towards capital expenditure and strategic growth planning for the coming year. The foundation of our economic optimism is solidified by the expected continuation of consumer support, bolstered by a strong labor market, and rising disposable incomes.

Main Street Report Points to Easing Delinquency Among Small Businesses

In the latest report, Oxford Economics anticipates an improved economic backdrop, along with a shift towards easier financing conditions, will keep the rise in corporate delinquencies muted and limit the normalization of bankruptcies over the coming year.

Possibility of Changing Fed Policies Bodes Well for Innovation

While headwinds such as inflation and cautious lending persist, the horizon is bright for small businesses. The Federal Reserve’s anticipated policy adjustments, alongside a resilient consumer base, provide a green light for investment and growth. The adaptability and forward-thinking approach of small businesses will be crucial in harnessing these opportunities, driving not only their success but also contributing to the broader economic prosperity.

Let It Grow

As we stand on the threshold of 2024, the U.S. economy, powered by the dynamism of Main Street, is preparing to embark on a season of growth. The challenges of the past have paved the way for a future marked by resilience, innovation, and optimism. Small businesses, supported by a strong economic foundation and favorable policies, are set to lead the charge in driving forward the American dream.

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