Small Business Defaults in California Unchanged in September
Chicago, IL, November 21, 2017 (Newswire.com) - In September 2017, the percentage of small firms late on repaying existing loans has remained unchanged in California, data published by PayNet show. Of the 18 major industries, 9 dropped and 8 rose in the state.
After comparable performance to August, California's PayNet Small Business Default Index (SBDFI) at 1.68% was 18 basis points less than the national SBDFI level of 1.86%. However, the uptick in defaults over the past two months may signal weakening financial health in the state. California's SBDFI increased 22 basis points over the last year, which was a much steeper rise than the 7 basis point increase displayed by the national SBDFI.
Transportation and Warehousing (4.38%); Information (2.78%); and Mining, Quarrying, and Oil and Gas Extraction (2.23%) exhibited the worst default rates of all industries in California. Nationally, Transportation and Warehousing had a default rate of 4.43%, with a difference of +0.35% compared to the prior year, while California had a variance of +0.96%.
At 97.4, California's PayNet Small Business Lending Index (SBLI) declined 0.5% from last month's state level and was 1.7% below this month's national SBLI level (99.1).
"More definitive trends are needed to gauge the future economic performance for California," states William Phelan, president of PayNet.
Source: www.paynet.com
