Outstanding performance in the third quarter is a great headline focused on the resiliency of the American consumer. Business confidence and financials benefited from a consumer confidence boost as market conditions appeared to improve as inflation receded. Consumer spending remained elevated, supporting small business cashflow health, but a rising percentage of that consumer spend originated from leveraged consumer credit products. Creditors have been monitoring the rise in unsecured debt utilization and putting into action exposure limiting underwriting criteria. This action meant that some consumers and small businesses were less likely to gain access to new credit at their primary lender but were able to seek out funding from an alternate lender at a more risk appropriate price point. Commercial and consumer credit markets remain open and available across risk tiers. The fourth quarter looks a bit more tense as businesses hold on restocking inventory as elevated consumer prices push back on the volume of purchases consumers can engage. A weakening retail outlook makes businesses rethink their holiday strategies. These cautious movements lead to exposure limiting decisions that will impact industries along the supply chain. There is potential for a soft landing in 2024, but that will lead to a longer period of higher than targeted inflation and lower overall growth expectations for the U.S. An odd twist to read about ahead is the reversal in the tide of lender opinion to continue tightening commercial underwriting criteria. Read more to find out why they would consider, as we enter a slow economic cycle in the U.S.