New Mexico Small Business Defaults Down in August, Borrowing Up
Chicago, IL, October 23, 2017 (Newswire.com) - Fewer of New Mexico's small businesses defaulted on existing loans and the level of borrowing activity increased in August 2017, data released by PayNet illustrate. The indices suggest that financial conditions in the state may improve.
Despite a 4 basis point decline from July, New Mexico's PayNet Small Business Default Index (SBDFI) at 2.26% was still 42 basis points above the national SBDFI level of 1.84%. The decline in defaults over the past four months may signal improving financial health in the state. Over the last year, New Mexico's SBDFI rose 17 basis points, while the national SBDFI increased 8 basis points.
Transportation and Warehousing (5.35%); Mining, Quarrying, and Oil and Gas Extraction (5.08%); and Construction (2.84%) registered the highest default rates of all industries in New Mexico. Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while New Mexico had a variance of -0.71%.
Registering at 84.4, the PayNet Small Business Lending Index (SBLI) for New Mexico increased 1.0% from last month's state level, but was 15.0% below this month's national SBLI level (99.3). Small business borrowers are cautiously increasing investment.
"Recent increased investment and improved financial health exhibited by New Mexico's small businesses set the stage for expansion," asserts William Phelan, president of PayNet.