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The
Thomson Reuters/PayNet Small Business Lending Index for March
registered 134, down 1 percent from last March. The index was up
4 percent from February, which had four fewer working days.
Movements in the index typically correspond with changes in
gross domestic product growth a quarter or two ahead. The U.S.
economy grew at a 0.7 percent annual pace in the first quarter,
figures released on Friday showed, the slowest in three years.
Bets that U.S. President Donald Trump's planned tax cuts will
boost corporate profits have lifted U.S. 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 percent 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 percent in March, unchanged from
February, PayNet data showed.
PayNet collects real-time loan information such as originations
and delinquencies from more than 325 leading U.S. lenders.
(Reporting by Ann Saphir; Editing by Jonathan Oatis)
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