North Carolina Small Business Defaults Up in May, as is Borrowing
Chicago, IL, July 24, 2017 (Newswire.com) - The percentage of small firms defaulting on loans has grown in North Carolina and the level of borrowing activity grew in May 2017, data published by PayNet illustrate. The data suggest that financial conditions in the state may weaken.
Despite a 3 basis point increase from April, North Carolina's PayNet Small Business Default Index (SBDFI) at 1.76% was still 11 basis points below the national SBDFI level of 1.87%. Over the last year, the national SBDFI increased 19 basis points, while North Carolina's SBDFI increased 16 basis points.
The industries with the highest default rate in North Carolina were Transportation and Warehousing (4.94%); Agriculture, Forestry, Fishing and Hunting (3.44%); and Information (2.67%). Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while North Carolina had a variance of +1.91%.
At 111.1, the PayNet Small Business Lending Index (SBLI) for North Carolina increased 1.3% from the previous month's state level and was 13.0% higher than the national SBLI level of 98.3 this month. The Index is basically unchanged from a year ago.
"Time will tell how these conditions will affect North Carolina's economy going forward," states the president of PayNet, William Phelan.
Source: www.paynet.com
