Michigan Small Business Defaults Up in June, as is Borrowing
Chicago, IL, August 9, 2017 (Newswire.com) - The percentage of small firms defaulting on loans has risen in Michigan and the level of borrowing activity increased in June 2017, data published by PayNet illustrate. The data suggest that financial conditions in the state may weaken.
Despite a 9 basis point rise from May, Michigan's PayNet Small Business Default Index (SBDFI) at 1.56% was still 30 basis points under the national SBDFI level of 1.86%. Higher default rates over the past year signals heightened financial stress in the state. Michigan's SBDFI rose 25 basis points year-over-year, which was a sharper climb than the 16 basis point increase displayed by the national SBDFI.
Accommodation and Food Services (3.65%); Mining, Quarrying, and Oil and Gas Extraction (3.43%); and Transportation and Warehousing (3.34%) exhibited the worst default rates of all industries in Michigan. As well as having the worst mark this month, Accommodation and Food Services has also seen the greatest rise compared to the previous year of any of Michigan's industries with a difference of +2.57%.
Registering at 109.8, the PayNet Small Business Lending Index (SBLI) for Michigan rose 1.0% from last month's state level and was 11.2% higher than this month's national SBLI level (98.7). Small business borrowers are cautiously increasing investment.
Source: www.paynet.com
