63503
US Small Business Borrowing Stalls
US Small Business Borrowing Stalls

US Small Business Borrowing Stalls

US Small Business Borrowing Stalls

Borrowing by small US firms stalled in March, as business owners remained cautious about investing amid policy uncertainty, data released on Monday showed.
The Thomson Reuters/PayNet Small Business Lending Index for March registered 134, down 1% from last March. The index was up 4% from February, which had four fewer working days, Reuters reported.
Movements in the index typically correspond with changes in gross domestic product growth a quarter or two ahead. The US economy grew at a 0.7% annual pace in the first quarter, figures released on Friday showed, the slowest in three years.
Bets that US President Donald Trump’s planned tax cuts will boost corporate profits have lifted US equities since his November election, but small businesses appear to be keeping their powder dry, said Bill Phelan, PayNet’s chief executive and founder.
“They didn’t get sucked into all the euphoria of public markets; they are just, ‘Wake me up when we are there’,” Phelan said in an interview. “There’s not going to be any kind of enthusiasm.”
Borrowing by healthcare companies was down 13% in the month, he said, probably reflecting worries about prospects for other Trump policies, including a so-far unsuccessful bid to repeal and replace the Obamacare healthcare law.
Small business borrowing is a key barometer of growth because small companies tend to do much of the hiring that drives economic gains.
Meanwhile, a separate barometer of small companies’ financial health suggests companies are not avoiding new debts because of troubles paying off old ones. The share of loans more than 30 days past due was 1.68% in March, unchanged from February, PayNet data showed.
PayNet collects real-time loan information such as originations and delinquencies from more than 325 leading US lenders.

 

Short URL : https://goo.gl/ewT2Bs
  1. https://goo.gl/jOEozH
  • https://goo.gl/E1tefA
  • https://goo.gl/V17K3O
  • https://goo.gl/G3FOyL
  • https://goo.gl/D7Gn7Q

You can also read ...

Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus