Small Business Defaults Rise, Borrowing Drops: “What Scares Us Is The Rise In Delinquencies”

Jon Alternative Media, Banking, Blogosphere, Economy

Yesterday, we pointed out something disturbing when we looked at the latest NACM Credit Manager Index report: over the past year it had declined steadily, hitting the lowest print since 2009, or as the National Asscoiation of Credit Managers’ economist Chris Kuehl said ‘Overall, it was fun while it lasted – the trends had been up and now they aren’t” adding that ‘the best that can be said about the decline is that it was bad and hasn’t gotten much worse…. The sales collapse is consistent with what has been appearing in the Purchasing Managers’ Index and other statistics, so it is unlikely to be an anomaly, not good timing as far as the retail community is concerned.’
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Today, we got a validating, and equally concerning, perspective on how small businesses are doing, courtesy of the latest Thomson Reuters/PayNet Small Business Lending Index, which fell to 121.5 in July, the lowest level since January and down from an upwardly revised 139.2 in June.

This post was published at Zero Hedge on Sep 2, 2016.