Experian/Moody's Analytics Report - Q3 2012
Tags: Business Information, Risk Management
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).
After four quarters of progress, small business credit conditions slipped as balances more than 90 days past due increases. The Q3 2012 report findings indicate tighter credit conditions by lenders due to receding credit balances. Additionally, the slowing growth of consumer spending continues to add pressure to small-business balance sheets as revenues dry up. Businesses feeling the pinch are dialing back hiring and other investments. However, small business credit health is expected to improve next year once the fiscal cliff is settled and a deal is struck to raise the debt ceiling.