PayNet reported the PayNet Canadian Small Business Lending Index (CSBLI) shows originations increasing to 140.8 in October 2015 from 135.7 in September 2015. Compared to the same month one year ago, the Index is up 10% and has risen year-over-year for 11 consecutive months.

“The Canadian economy is still in the midst of transition resulting from the persistent impact of lower priced oil,” states William Phelan president of PayNet. “Medium sized companies retrenched again, but small businesses grew which diversifies the Canadian economy further from oil.”

Expanding industry segments show the consumer to be active. On a year-over-year basis, Food & Accommodation rose 21%; however, Retail’s growth slowed dramatically to 1%. Professional Services represented another area of strong growth with a 35% increase. More investment by manufacturers showed a bright spot in this release with a 4% jump over last year.

Loans past due show little sign of significant distress, and even with this recession they remain lower than in the U.S. The PayNet Canadian Small Business Delinquency Index (CSBDI) 30+ days past due decreased 2 basis points to 0.92% from September to October.

Lenders seem to be managing past dues well geographically with no major spike in delinquency in any region. Alberta, Atlantic Canada, Ontario and Quebec all show decreasing days past due resulting from improving local economies. British Columbia, Manitoba and Saskatchewan show slight rises in delinquency that remain well within normal levels.

“Retooling a big economy like Canada takes time, but is expected to ultimately make the Canadian economy stronger as it diversifies into manufacturing, travel and professional services,” Phelan added.