Processing ContentThe six-month outlook for business conditions fell into negative territory for the first time in two years, the American Financial Services Association said Thursday in its latest consumer credit conditions study. The near-term outlook remained cloudy, with more respondents than not expecting overall loan performance, and subprime loan performance, to worsen somewhat or considerably between now and the end of the year. The American Financial Services Association, a trade group for consumer credit companies, has surveyed its members about credit conditions on a quarterly basis since early 2024. The latest survey results highlight the reality that higher interest rates drive up funding costs for consumer credit firms. On the positive side, stronger demand shows that consumers with higher credit scores are willing and able to take on debt.