Small businesses remained resilient in August as credit access narrowed and delinquency increased
August 2026
- Index Value (Jul):38.2
- Previous Month:47.2
- MoM:-9.0
- YoY:+0.8 (Aug 2025 = 37.4)
The Experian Small Business Index™ declined 9 points to 38.2 in August, which is nearly level with last year at this time.
Small business owners’ credit risk showed some stress signals in August. There were increases in 61 days past due balances on revolving trades and an increase in utilization on accounts 91+ days past due. There are also signs that business owners may be unable to open the new consumer trades they are seeking. On the business side, utilization and the number of accounts 91+ days past due have both increased putting downward pressure on the score.
Lifting the score are positive signs in the market, with a decrease in business owners’ 30 days past due balances, the number of public record filings, and their 91+ days past due delinquency rates. There was also an increase in the number of emerging businesses, which is a positive sign for the health of the small business ecosystem.
On the macroeconomic side, the economy continues to look strong outside of sustained higher inflation rates. The economy added 162K jobs in August, up from an upwardly revised 21K in July and the most in a month since May 2026. Unemployment also remained low at 4.1% while wages continued to increase, though at a lower rate than inflation. Inflation remains the main challenge to the economy with headline inflation at 3.4% in August. Stripping out food and energy, core inflation was 2.4%, a slight decrease from July. The main driver of this inflation is the continuation of high energy prices.
New businesses continue to form at a very high rate, with 532K new businesses launched in August, well above the historical average. Small business optimism fell slightly but remained strong in August at 98.7. There may be some signs of stress for business owners with their consumer credit, however, which will be something to monitor in coming months. While there was a drop in the index month-over-month, the year-over-year comparison shows a steady state for small businesses.
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Experian Small Business Index saw rising utilization and 91+ day past-due rates, which contributed to the monthly decline.
The Experian Small Business Index declined by 0.7 in June, but remains well above last years level on strong small business sentiment.
Small businesses navigated headwinds in May as uncertainty began to rise May 2026 Index Value (Mar): 51.2 Previous Month: 52.2 MoM: -1.0 YoY: +6.0 (May 2025 = 57.2) The Experian Small Business Index™ decreased slightly, falling 1 point to 51.2 in May, but remained 6 points higher than a year ago. Several credit risk factors supported the index in May. Past-due balances on business owners’ consumer accounts declined, as did later-stage delinquencies on their commercial accounts. However, several factors weighed on the index. Commercial credit utilization increased, and there was a sharp rise in consumer public records filings. While public records are typically a lagging indicator, this trend warrants monitoring in the coming months. In the broader economy, the unemployment rate declined to 4.2% from 4.3%, and GDP grew by 2.1%, exceeding expectations. Several measures of inflation also increased in May. Headline inflation rose from 3.8% in April to 4.2%, while core inflation, which excludes food and energy, increased from 2.8% to 2.9%. Energy prices were 23.5% higher than a year earlier and likely contributed to broader inflationary pressures. Food prices declined 0.1%, while rent increased 0.1%. Business formation remained strong, with 524,000 new business applications filed in May, up from 505,000 in April. This occurred despite the NFIB Uncertainty Index increasing to 91. The NFIB Small Business Optimism Index edged down to 95.3 in May from 95.9 in April. Explore Experian Small Business Index Related Posts
