Drag On Recovery? Fast-Growth Firms Ignore Low Interest Rates

ByJohn S. McClenahen Don't write off the U.S. recovery from the 2001 recession. However, a survey from PricewaterhouseCoopers LLP (PwC) suggests a little caution may be in order. Only 16% of the nation's fast-growth companies completed new bank loans during this year's July through September quarter, down from 19% or more in each of the previous three calendar quarters, the data show. "This decrease in activity was counterintuitive, coinciding with a further decline in ban interest rates -- to an average of only 4.68% -- a reduction of 13 basis points from the prior quarter and 76 [basis points] from a year ago," says the professional services firm. PwC interviewed CEOs in 383 privately held product and service companies whose revenues ranged from about $5 million to $150 million.