The chief economists of the continent’s largest banks say they believe conditions in the business and consumer credit markets will improve over the next six months.

The American Bankers Association’s newest quarterly Credit Conditions Outlook Survey found that the chief economists of North America’s major banks expect credit market conditions to remain soft over the next six months, but that their near-term pessimism has waned since the survey was last conducted in September.

“Both lenders and borrowers fared better last year than we would have expected as a result of the severe dislocations caused by the pandemic,” ABA Senior Economist Rob Strand said in a statement. “A robust federal response has been a critical element of the recovery, and banks continue to work with consumers and businesses struggling to make ends meet.”

The survey’s consumer credit index rose to 45.3 – where a reading above 50 indicates an expectation of improvement – while the business credit index rose to 42.2, the strongest reading in more than two years.

“Although credit quality is still expected to worsen over the first half of the year for both consumers and businesses, the overall outlook for credit markets has improved significantly since the summer and fall,” said Strand. “As widespread inoculations against the virus and new fiscal stimulus measures help heal the economy, banks will continue to work closely with policymakers, consumers and businesses to ensure that affordable credit remains available and recovery strengthens.”