Arizona Small Business Defaults Down in May, as is Borrowing
Chicago, IL, July 24, 2017 (Newswire.com) - Fewer of Arizona's small businesses defaulted on existing loans and the level of borrowing activity decreased in May 2017, data released by PayNet show. The data suggest that financial conditions in the state may improve.
The PayNet Small Business Default Index (SBDFI) for Arizona registered at 1.75% following a 6 basis point fall from April. Compared to the national SBDFI level of 1.87%, Arizona's SBDFI was 12 basis points lower. The decrease in defaults over the past four months may signal better business conditions in the state. The national SBDFI increased 19 basis points over the last year, which was a sharper rise than the 13 basis point increase displayed by the Arizona SBDFI.
Transportation and Warehousing (4.47%); Mining, Quarrying, and Oil and Gas Extraction (3.85%); and Admin & Support and Waste Management & Remediation Services (2.81%) recorded the highest default rates of all industries in Arizona. Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while Arizona had a variance of +0.84%.
Registering at 91.6, the PayNet Small Business Lending Index (SBLI) for Arizona declined 1.1% from last month's state level and was 6.8% below the national SBLI level of 98.3 this month. Small business borrowers are being cautious and holding off on new investment.
"Falling defaults over recent months signal improved financial health," states the president of PayNet, William Phelan.
Source: www.paynet.com
