Ohio Small Business Defaults Up in May, as is Borrowing
Chicago, IL, July 25, 2017 (Newswire.com) - The percentage of Ohio's small firms defaulting on loans has grown and the level of borrowing activity increased in May 2017, data reported by PayNet show. The indices suggest that financial conditions in the state may weaken.
PayNet’s Small Business Default Index (SBDFI) for Ohio registered at 1.49% after a 2 basis point increase from April. Compared to the national SBDFI level of 1.87%, Ohio's SBDFI was 38 basis points less. Year-over-year, the national SBDFI increased 19 basis points, while Ohio's SBDFI increased 10 basis points.
The three industries with the highest default rate in Ohio were Transportation and Warehousing (3.35%); Retail Trade (2.36%); and Health Care and Social Assistance (1.97%). Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while Ohio had a variance of +1.16%.
Registering at 102.2, Ohio's PayNet Small Business Lending Index (SBLI) increased 1.1% from last month's state level and was 4.0% greater than the national SBLI level of 98.3 this month. Small business borrowers are cautiously increasing investment.
"Time will tell how these conditions will affect Ohio's economy going forward," states the president of PayNet, William Phelan.
Source: www.paynet.com
