Demand for business loans strong

Demand for business loans has remained strong, the Federal Reserve reported yesterday in a seasonal survey that showed business borrowing has boomed despite repeated moves by the Fed to tighten credit.

The Fed surveyed loan officers at 58 domestic banks and 18 U.S. branches of foreign banks in May. "Demand for business credit surged," the Fed reported. There was a notable pickup in credit demand over the past three months, since the last similar survey in February.