Small Business Borrowing in California Stalls in June
Chicago, IL, August 8, 2017 (Newswire.com) - In June 2017, borrowing remained stagnant in California, according to data published by PayNet. Of the 18 major industries, 10 increased and 7 fell in California.
Registering at 97.6, California's PayNet Small Business Lending Index (SBLI) performed similarly to the previous month's state level, but was 1.1% beneath this month's national SBLI level (98.7). We can cautiously anticipate improving financial conditions in California based on recent small business investment.
The three industries with the most favorable change in lending activity over the past year in California were Construction (16.2%); Admin & Support and Waste Management & Remediation Services (12.1%); and Mining, Quarrying, and Oil and Gas Extraction (8.0%). Nationally, Construction grew by 4.6% year over year.
The PayNet Small Business Default Index (SBDFI) for California stood at 1.62%. Following a similar value to last month, California's SBDFI was 24 basis points under the national SBDFI level of 1.86%. Compared to last year, the national SBDFI rose 16 basis points, while California's SBDFI rose 15 basis points.
"Stable investment and improved financial health exhibited by California's small businesses set the stage for expansion with low credit risk," asserts William Phelan, president of PayNet.
Source: www.paynet.com
