Michigan Small Business Defaults Down in August, Borrowing Up
Chicago, IL, October 23, 2017 (Newswire.com) - Fewer of Michigan's small businesses defaulted on existing loans and the level of borrowing activity increased in August 2017, data issued by PayNet show. The indices suggest that financial conditions in the state may improve.
Following a 3 basis point drop from July, Michigan's PayNet Small Business Default Index (SBDFI) at 1.48% was 36 basis points less than the national SBDFI level of 1.84%. The decline in defaults over the past two months may signal improving financial health in the state. Year-over-year, Michigan's SBDFI increased 18 basis points, while the national SBDFI rose 8 basis points.
The industries with the worst default rates in Michigan were Accommodation and Food Services (3.62%); Transportation and Warehousing (3.16%); and Mining, Quarrying, and Oil and Gas Extraction (2.54%). With a 2.56% variance, Accommodation and Food Services has also had the greatest increase compared to the previous year of any industry in Michigan.
Coming in at 110.5, Michigan's PayNet Small Business Lending Index (SBLI) increased 1.1% from the previous month's state level and was 11.3% higher than this month's national SBLI level (99.3). The Index is basically unchanged from a year ago.
"It appears that the small business economy is improving," asserts the president of PayNet, William Phelan.
Source: www.paynet.com
