Illinois Small Business Defaults Fall in May
Chicago, IL, July 28, 2017 (Newswire.com) - In May 2017, fewer small businesses defaulted on loans in Illinois, despite default rates in 9 of the 18 major industries rising in the state, data released by PayNet shows.
Following a 6 basis point decline from April, Illinois' PayNet Small Business Default Index (SBDFI) at 1.67% was 20 basis points below the national SBDFI level of 1.87%. The decline in defaults over the past two months may signal better business conditions in the state. Illinois' SBDFI increased 30 basis points over the last year, which was a sharper upturn than the 19 basis point increase exhibited by the national SBDFI.
The industries with the highest default rate in Illinois were Transportation and Warehousing (4.46%); Manufacturing (3.03%); and Accommodation and Food Services (2.57%). Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while Illinois had a variance of +1.50%.
Coming in at 111.9, Illinois' PayNet Small Business Lending Index (SBLI) increased 0.6% from the previous month's state level and was 13.8% higher than the national SBLI level of 98.3 this month. Year-over-year, business investment deteriorated 4.0%.
"The performance of defaults over the past 3 months may foster a better lending environment," states the president of PayNet, William Phelan.
Source: www.paynet.com
