The SBLI decreased 6% to 136.1 in August, but is still up 14% compared to the same month a year ago.
“This report shows economic conditions receiving a lift from the small business sector of the economy,” said William Phelan, president of PayNet. “At a time of weaker public company performance, this report shows small businesses expanding to build more goods and deliver more services to consumers.”
The Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) 31-90 days past due was unchanged at 1.21% from July to August. On a year-over-year basis, moderate delinquencies declined six basis points. This is the largest year-over-year decrease since March 2014. Low loan delinquencies signal strong continued financial health and this also means small businesses remain poised to invest further to meet consumer demand for their goods and services.
“We anticipate some rocky roads ahead as big companies transition and overseas markets stabilize, but overall continued expansion and credit quality will remain above average levels for private commercial loans,” said Phelan.
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