Small Business Defaults in Pennsylvania Up in January
Chicago, IL, March 13, 2017 (Newswire.com) - PayNet, the premier provider of credit ratings on small businesses, states that in January 2017 overall defaults increased among Pennsylvania’s small businesses, with default rates in 14 of the 18 major industries rising in the state.
PayNet’s Small Business Default Index (SBDFI) for Pennsylvania registered at 1.87% after a 9 basis point increase from December. Compared to the national SBDFI level of 1.84%, Pennsylvania’s SBDFI was 3 basis points greater. Pennsylvania's SBDFI increased 48 basis points over the last year, while the national SBDFI increased 29.
The three industries with the worst default rate in Pennsylvania were Mining, Quarrying, and Oil and Gas Extraction (5.99%); Transportation and Warehousing (3.57%); and Manufacturing (2.38%). Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 4.49%, with a difference of +2.13% compared to the prior year variance of +0.88% in Pennsylvania.
The PayNet Small Business Lending Index (SBLI) for Pennsylvania came in at 100.5, exceeding the national SBLI level and performing comparably to the previous month's state level. Year-over-year, business investment deteriorated 2.0%, reducing future growth potential.
"Time will tell how these conditions will affect Pennsylvania's economy going forward," asserts William Phelan, president of PayNet.