Chicago, IL, October 23, 2017 (PRESS RELEASE JET) – In August 2017, small business loan defaults worsened in California, despite default rates in 13 of the 18 major industries falling in the state, according to data published by PayNet.
PayNet’s Small Business Default Index (SBDFI) for California registered 1.65% following a 2 basis point increase from July. California’s SBDFI was 19 basis points below the national SBDFI level of 1.84%. California’s SBDFI rose 21 basis points year-over-year, which was a significantly sharper rise than the 8 basis point increase displayed by the national SBDFI.
The industries with the worst default rates in California were Transportation and Warehousing (4.46%); Information (2.96%); and Mining, Quarrying, and Oil and Gas Extraction (2.44%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while California had a variance of +1.06%.
Coming in at 97.9, California’s PayNet Small Business Lending Index (SBLI) performed comparable to last month’s state level, but was 1.4% below this month’s national SBLI level (99.3).
“More definitive trends are needed to gauge the future economic performance for California,” states the president of PayNet, William Phelan.
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