Compared to the same month one year ago, the index is down 3%, the second consecutive year-over-year decrease.
“Small businesses remain bearish for now. The Industrial sector in particular is on-hold while the consumer sector is provides the main source of growth,” said William Phelan, president of PayNet
According to the SBLI, construction expanded the most in May (9.2%), followed by arts, entertainment and recreation (8.2%) and retail trade by (6.0%). Mining and agriculture contracted the most, falling 14% and 15%, respectively.
Food and accommodation registered a sharp pullback falling 6%, which is considerably lower than the 3% loss recorded in April.
Additionally, the Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) 31-90 days past due increased three basis points from 1.23% in April 2016 to 1.26% in May 2016, its highest level since September 2014.
Compared to one year ago, delinquency increased by two basis points, the first time delinquency has increased year-over-year since May 2015.
Transportation delinquency is up 14 basis points to 1.54%, its 15th consecutive month of increases and its highest level since December 2012.
“The presidential election, trade and tax policy add up to caution for small businesses,” Phelan said. “Credit quality of private company loans will remain above average and GDP won’t get much lift from small businesses over the next quarter.”
When it comes right down to it, the vendor finance segment of the equipment leasing and finance business has become stale, boring and bereft of innovative products and services. Six years ago I wrote an article predicting the future of... read more
Cloud-based technology touches almost every aspect of our life, from consuming news and entertainment to travel to simply communicating and connecting with each other. The cloud surrounds us and serves as the connecting force between technology and our daily routines.... read more