New York Small Business Defaults Up in March, Borrowing Falls
Chicago, IL, May 10, 2017 (Newswire.com) - Data released by PayNet show that more New York small businesses defaulted on loans and the level of borrowing activity fell in March 2017. The data suggest that economic conditions in the state may significantly weaken.
In spite of an 11 basis point climb from February, New York's PayNet Small Business Default Index (SBDFI) of 1.65% was still 22 basis points under the national SBDFI level of 1.87%. The uptick in defaults over the past two months may signal deteriorating financial health in the state. Both the New York and national SBDFI climbed 25 basis points year-over-year.
Transportation and Warehousing (2.87%); Retail Trade (2.41%); and Information (2.39%) registered the highest default rates of all industries in New York. Nationally, Transportation and Warehousing had a default rate of 4.49%, with a difference of +1.24% compared to the prior year variance of +1.01% in New York.
The PayNet Small Business Lending Index (SBLI) for New York was 99.5, exceeding the national SBLI level despite dropping by 1.6% from the previous month's state level. Small business borrowers are being cautious and holding off on new investment.
"Declining investment and deteriorating financial health exhibited by New York's small businesses set the stage for a slowing economy," states the president of PayNet, William Phelan.