Small Business Defaults in Missouri Up in June
Chicago, IL, August 9, 2017 (Newswire.com) - PayNet, the leading provider of small business credit data and analytics for the commercial and industrial lending industry, reports that in June 2017 the percentage of small businesses defaulting on loans has risen in Missouri, despite default rates in 10 of the 18 major industries falling in the state.
After an 8 basis point rise from May, Missouri's PayNet Small Business Default Index (SBDFI) at 1.99% was 13 basis points above the national SBDFI level of 1.86%. The uptick in defaults over the past three months may signal weakening financial health in the state. Year-over-year, Missouri's SBDFI rose 38 basis points, which was a significantly steeper rise than the 16 basis point increase exhibited by the national SBDFI.
The three industries with the highest default rates in Missouri were Transportation and Warehousing (5.05%); Professional, Scientific, and Technical Services (3.08%); and Construction (2.69%). Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.68% compared to the prior year, while Missouri had a variance of +0.66%.
Coming in at 86.2, Missouri's PayNet Small Business Lending Index (SBLI) rose 0.1% from the previous month's state level, but was 12.7% below this month's national SBLI level (98.7). Small business borrowers are cautiously increasing investment.
"More definitive trends are needed to gauge the future economic performance for Missouri," states William Phelan, president of PayNet.
Source: www.paynet.com
