New York Small Business Defaults Up in February, Borrowing Down
Chicago, IL, April 13, 2017 (Newswire.com) - Data announced by PayNet show that the percentage of New York's small businesses defaulting on loans has deteriorated and the level of borrowing activity worsened in February 2017. The indices suggest that economic conditions in the state may weaken.
The PayNet Small Business Default Index (SBDFI) for New York registered at 1.58% following a 5 basis point rise from January. Compared to the national SBDFI level of 1.89%, New York's SBDFI was 31 basis points less. Year-over-year, the national SBDFI increased 30 basis points, while New York's SBDFI increased 19.
The industries with the worst default Index in New York were Transportation and Warehousing (2.84%); Retail Trade (2.43%); and Agriculture, Forestry, Fishing and Hunting (2.01%). Nationally, Transportation and Warehousing had a default rate of 4.44%, with a difference of +1.31% compared to the prior year variance of +1.07% in New York.
At 100.9, New York's PayNet Small Business Lending Index (SBLI) exceeded the national SBLI level of 99.0 despite falling by 1.3% from last month's state level. However, the Index is basically unchanged from a year ago.
"Time will tell how these conditions will affect New York's economy going forward," states William Phelan, president of PayNet.