Pennsylvania Small Business Defaults Increasing in March
Chicago, IL, May 10, 2017 (Newswire.com) - In March 2017, small business loan defaults worsened in Pennsylvania, according to data announced by PayNet. Of the 18 major industries, 9 rose and 8 dropped in the state.
Despite a 9 basis point climb from February, Pennsylvania's 1.85% PayNet Small Business Default Index (SBDFI) was still 2 basis points below the national SBDFI level of 1.87%. Pennsylvania's SBDFI increased 37 basis points over the last year, while the national SBDFI increased 25.
The industries with the highest default rate in Pennsylvania were Mining, Quarrying, and Oil and Gas Extraction (4.76%); Transportation and Warehousing (3.64%); and Manufacturing (2.47%). Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 4.61%, with a difference of +1.81% compared to the prior year variance of -0.75% in Pennsylvania.
At 100.2, the PayNet Small Business Lending Index (SBLI) for Pennsylvania surpassed the national SBLI level (98.3) despite declining by 0.2% from the previous month's state level. Small business borrowers are being cautious and holding off on new investment.
"Time will tell how these conditions will affect Pennsylvania's economy going forward," says the president of PayNet, William Phelan.