Small Business Defaults in Missouri on the Decline in January
Jefferson City, MO, March 15, 2018 (Newswire.com) - In January 2018, fewer of Missouri's small businesses defaulted on existing loans, according to data published by PayNet. Of the 18 major industries, 11 improved and 4 worsened in the state.
Following a 4 basis point drop from December, Missouri's PayNet Small Business Default Index (SBDFI) at 1.74% was 8 basis points below the national SBDFI level of 1.82%. The decrease in defaults over the past three months may signal improving financial health in the state. Over the last year, the national SBDFI dropped 2 basis points, while Missouri's SBDFI dropped 9 basis points.
Transportation and Warehousing (3.61%); Information (2.64%); and Wholesale Trade (2.21%) exhibited the highest default rates of all industries in Missouri. Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while Missouri had a variance of -1.40%.
The PayNet Small Business Lending Index (SBLI) for Missouri was 86.0, performing similarly to the previous month's state level, but 15.4% below the national SBLI level of 101.7 this month.
"More definitive trends are needed to gauge the future economic performance for Missouri," asserts William Phelan, president of PayNet.