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The
Thomson Reuters/PayNet Small Business Lending Index rose to
133.7 in August from an upwardly revised 123.1 in July, which
had three fewer working days. Borrowing by companies in most
industries, except construction and recreation, fell.
"It's malaise, rather than freefall," said Bill Phelan, PayNet's
president.
Companies also struggled to pay back existing debts, PayNet data
showed. Loans more than 30 days past due rose in August to 1.63
percent, the fifth straight monthly increase and the highest
delinquency rate since December 2012.
The figures come as the Federal Reserve mulls the timing of its
next rate hike. Higher interest rates tend to slow economic
growth. Movements in the index typically correlate with
movements in gross domestic product growth a quarter or two
ahead.
The U.S. economy grew an estimated 1.4 percent in the second
quarter, though many economists believe that rate improved in
the third quarter.
Small business borrowing is a key barometer of growth because
small companies tend to do much of the hiring that drives
economic gains.
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 Lisa Shumaker)
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