Ohio Small Business Defaults Down in June, Borrowing Up
Chicago, IL, August 9, 2017 (Newswire.com) - Data published by PayNet indicate that a smaller number of small businesses defaulted on loans in Ohio and the level of borrowing activity improved in June 2017. The indices suggest that financial conditions in the state may improve.
Following a 4 basis point decline from May, Ohio's PayNet Small Business Default Index (SBDFI) at 1.44% was 42 basis points under the national SBDFI level of 1.86%. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Year-over-year, the national SBDFI increased 16 basis points, which was a much sharper rise than the 4 basis point increase exhibited by the Ohio SBDFI.
Transportation and Warehousing (3.16%); Retail Trade (2.12%); and Agriculture, Forestry, Fishing and Hunting (1.91%) displayed the highest default rates of all industries in Ohio. Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.68% compared to the prior year, while Ohio had a variance of +0.48%.
At 103.1, the PayNet Small Business Lending Index (SBLI) for Ohio increased 1.2% from the previous month's state level and was 4.5% greater than the national SBLI level of 98.7 this month. Small business borrowers are cautiously increasing investment.
"Small business growth bodes well for future GDP," states the president of PayNet, William Phelan.
Source: www.paynet.com
