Small Business Borrowing in New Jersey Falls in March
Chicago, IL, May 10, 2017 (Newswire.com) - PayNet, the leading provider of credit ratings on small businesses, announces that in March 2017 New Jersey’s small firm borrowing activity decreased, with 11 of the 18 major industries falling in the state.
New Jersey's PayNet Small Business Lending Index (SBLI) registered at 97.1, declining 1.4% from the previous month's state level and 1.2% beneath the national SBLI level (98.3) this month. Small business borrowers are behaving more cautiously by reducing investment.
Admin & Support and Waste Management & Remediation Services (-14.8%); Real Estate and Rental and Leasing (-13.8%); and Professional, Scientific, and Technical Services (-9.6%) were the industries with the largest drop in lending activity over the past year in New Jersey. Nationally, Admin & Support and Waste Management & Remediation Services grew by 4.8% year over year.
PayNet’s Small Business Default Index (SBDFI) for New Jersey stood at 1.59%. After a similar performance to last month, New Jersey's SBDFI was 28 basis points below the national SBDFI level of 1.87%. The national SBDFI climbed 25 basis points compared to last year, whereas New Jersey's SBDFI dropped 8.
"Slower borrowing and investment by small businesses means lower GDP in the next quarter," asserts the president of PayNet, William Phelan.