Michigan Small Business Defaults Up in May
Chicago, IL, July 24, 2017 (Newswire.com) - PayNet, the premier provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in May 2017 overall defaults worsened within small businesses in Michigan. However, of the 18 major industries, 10 improved in the state compared to the prior month.
In spite of a 2 basis point increase from April, Michigan's PayNet Small Business Default Index (SBDFI) at 1.45% was still 42 basis points under the national SBDFI level of 1.87%. The uptick in defaults over the past four months may signal weakening financial health in the state. Year-over-year, the national SBDFI increased 19 basis points, while Michigan's SBDFI rose 13 basis points.
Mining, Quarrying, and Oil and Gas Extraction (4.06%); Transportation and Warehousing (3.66%); and Accommodation and Food Services (2.07%) displayed the highest default rates of all industries in Michigan. As well as having the worst mark this month, Mining, Quarrying, and Oil and Gas Extraction has also seen the largest change from last year of any of Michigan's industries with a difference of +2.42%.
Coming in at 108.5, the PayNet Small Business Lending Index (SBLI) for Michigan rose 0.4% from last month's state level and was 10.4% greater than this month's national SBLI level (98.3). Year-over-year, business investment deteriorated 4.0%.
"Despite the performance of defaults over recent months, lending appears to be turning up," asserts the president of PayNet, William Phelan.
Source: www.paynet.com
