Wisconsin Small Business Defaults Up in March, Borrowing Falls
Chicago, IL, May 10, 2017 (Newswire.com) - The percentage of Wisconsin's small firms defaulting on loans has grown and the level of borrowing activity decreased in March 2017, data released by PayNet show. The indices suggest that economic conditions in the state may significantly weaken.
PayNet’s Small Business Default Index (SBDFI) for Wisconsin ranked 2nd nationally at only 1.17% following a 2 basis point rise from February. Wisconsin's SBDFI was 70 basis points below the national SBDFI level of 1.87%. The uptick in defaults over the past two months may signal deteriorating financial health in the state. Year-over-year, the national SBDFI increased 25 basis points, whereas Wisconsin's SBDFI dropped 7 basis points.
Transportation and Warehousing (3.62%); Mining, Quarrying, and Oil and Gas Extraction (2.21%); and Agriculture, Forestry, Fishing and Hunting (1.94%) displayed the highest default rates of all industries in Wisconsin. Nationally, Transportation and Warehousing had a default rate of 4.49%, with a difference of +1.24% compared to the prior year variance of +1.03% in Wisconsin.
Wisconsin's PayNet Small Business Lending Index (SBLI) ranked 3rd in the country at 120.2, eclipsing the national SBLI (98.3) by 22.3%. However, the state did perform 1.2% below last month. Small business borrowers are being cautious and holding off on new investment.
"Declining investment and deteriorating financial health exhibited by Wisconsin's small businesses set the stage for a slowing economy," states William Phelan, president of PayNet.