Experian/Moody's Analytics Small Business Credit Index - Q2 2013
Tags: Business Information, Risk Management
Small-business credit conditions strengthened in Q2, lifting the Experian/Moody's Analytics Small Business Credit Index to the highest level since it began tracking in 2010. Though small-business recovery has been inconsistent regionally, findings from the report indicate that firms have steadily reduced their delinquent debt over the past year. Balance volumes for all business sizes receded measurably from last year, bringing down delinquency rates. Furthermore, credit quality has strengthened for every business size. At an average of 10.2 percent, the total share of delinquent dollars is 2.4 percentage points lower than it was a year ago and is at the lowest point on record. Looking forward, small-business credit quality is expected to continue improving at a modest pace until spending growth accelerates sometime in 2014.
The Experian/Moody's Analytics Small Business Credit Index tracks how businesses are faring over a period of time compared with a base point, with the first quarter of 2011 being equal to 100. The key factors that comprise the index are commercial credit data (including growth of credit balances and delinquency rates measured on a dollar basis) combined with a variety of macroeconomic data (including growth rates for employment, income, retail sales, investment, output and industrial production).