Study: Small-Business Credit Conditions Deteriorated to Start 2014

The Experian/Moody’s Analytics Small Business Credit Index, which measures credit quality for firms with fewer than 100 employees, declined 110.5 for the quarter and included an unexpected increase in delinquency rates.

The following are among interesting findings therein:

  • Retail sales growth deteriorated to a worse-than-expected 0.3% loss from 2.9% gain in 2013’s final quarter.
  • The biggest categorical rise within delinquencies took place in the 60- to 90-day bucket.
  • Credit balances declined despite reported looser bank lending standards in the first quarter.
  • Construction, known to be generally more likely for delinquency, is improving its image thanks to a notable rise in spending. 
  • Transportation companies had the worst delinquency rate (18.1%) among large, significant industries, and continues to grow.
  • Agriculture showed an uptick in delinquencies, albeit from low levels. 
  • The gap between the best- and worst-performing US states is widening. 
  • Florida, again, topped the worst-performers list. 
  • Utah and other Mountain, Western states reported the lowest delinquency rates. 
  • California and Texas were among the best-performing, high-population states.
- Brian Shappell, CBA, CICP, NACM staff writer

No comments:

Post a Comment