Kansas Small Business Defaults Down in December, as is Borrowing
Topeka, KS, February 28, 2018 (Newswire.com) - The percentage of Kansas' small firms defaulting on loans has improved and the level of borrowing activity decreased in December 2017, data published by PayNet illustrate. The data suggest that financial conditions in the state may improve.
The PayNet Small Business Default Index (SBDFI) for Kansas registered at 2.10% after a 6 basis point fall from November. Kansas' SBDFI was 27 basis points greater than the national SBDFI level of 1.83%. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Over the last year, Kansas' SBDFI rose 26 basis points, while the national SBDFI has held flat.
The industries with the highest default rates in Kansas were Construction (3.58%); Transportation and Warehousing (3.57%); and Information (3.03%). Nationally, Construction had a default rate of 2.07%, with a difference of --0.01% compared to the prior year, while Kansas had a variance of +0.38%.
The PayNet Small Business Lending Index (SBLI) for Kansas registered at 100.3, declining 1.2% from last month's state level, but still performing similarly to the national SBLI level of 100.3 this month.
"More definitive trends are needed to gauge the future economic performance for Kansas," explains the president of PayNet, William Phelan.