PayNet: Small Business Growth Steady But ‘Unspectacular’
The September release of small business investment trends prepared by PayNet illustrates the small business economy is experiencing unspectacular but steady expansion.
The Thomson Reuters/PayNet Small Business Lending Index (SBLI) decreased 6% to 109.7 from 116.6 in August. However, compared to a year ago, the SBLI is up 16%, the largest year-over-year percentage increase since July 2012.
Trend line growth for third quarter is averaging 10%, driven by demand for grains in the Agriculture sector, building of infrastructure for Energy exploration and development and some housing activity. Meanwhile, the Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) is flat at 1.18% September. 2013 will be marked as the historic low-point for small business credit risk but higher risk is a positive for the economy as it suggests businesses are making efforts to develop opportunities.
“Current growth is not explosive, but it is still growth which is good. A steady pace of growth may be more sustainable as it avoids the ups and downs of a boom and bust cycle,” said William Phelan, president of PayNet.