New York Small Business Defaults Up in April
Chicago, IL, June 9, 2017 (Newswire.com) - In April 2017, small business loan defaults worsened overall in New York, according to data released by PayNet. However, of the 18 major industries, 10 fell in the state.
Despite a 22 basis point increase from March, New York's PayNet Small Business Default Index (SBDFI) of 1.86% was still 4 basis points under the national SBDFI level of 1.90%. The uptick in defaults over the past three months may signal deteriorating financial health in the state. New York's SBDFI rose 46 basis points over the last year, while the national SBDFI rose 26 basis points.
The industries with the worst default rate in New York were Transportation and Warehousing (2.93%); Accommodation and Food Services (2.34%); and Retail Trade (2.33%). Nationally, Transportation and Warehousing had a default rate of 4.54%, with a difference of +1.12% compared to the prior year versus a variance of +1.00% in New York.
Coming in at 100.1, the PayNet Small Business Lending Index (SBLI) for New York surpassed the national SBLI level (98.2) despite dropping by 0.4% from last month's state level. Small business borrowers are being cautious and holding off on new investment.
"Declining investment and deteriorating financial health exhibited by New York's small businesses set the stage for a slowing economy," asserts the president of PayNet, William Phelan.
Source: www.paynet.com
