New Mexico Small Business Defaults Down in December, as is Borrowing
Santa Fe, NM, February 28, 2018 (Newswire.com) - Data released by PayNet illustrate that the percentage of small businesses defaulting on existing loans has improved in New Mexico and the level of borrowing activity fell in December 2017. The data suggest that financial conditions in the state may improve.
PayNet’s Small Business Default Index (SBDFI) for New Mexico registered at 2.13% after an 11 basis point reduction from November. Compared to the national SBDFI level of 1.83%, New Mexico's SBDFI was 30 basis points higher. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Year-over-year, New Mexico's SBDFI rose 5 basis points, while the national SBDFI has remained consistent.
The three industries with the worst default rates in New Mexico were Mining, Quarrying, and Oil and Gas Extraction (4.48%); Transportation and Warehousing (4.03%); and Information (2.80%). Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 2.70%, with a difference of --2.18% compared to the prior year, while New Mexico had a variance of -0.83%.
At 85, New Mexico's PayNet Small Business Lending Index (SBLI) dropped 1.4% from last month's state level and was 15.3% lower than the national SBLI level of 100.3 this month. Year-over-year, business investment improved 9.0%.
"Small businesses in New Mexico are exhibiting restraint in investment resulting in stronger financial health.," asserts the president of PayNet, William Phelan.