US Small Business Borrowing at High Marks This Year

US Small Business Borrowing at High Marks This Year

US Small Business Borrowing at High Marks This Year

$DIA, $SPY, $QQQ, $VXX

Borrowing by small US firms hit its highest level in nearly a year, data showed Thursday, suggesting businesses are ramping up investments to meet customer demand.

The Thomson Reuters/PayNet Small Business Lending Index for May rose to 137, its highest since June 2016, from an upwardly revised April reading of 125.4.

The increase was driven by an 11% Y-Y rise in borrowing by businesses in arts and entertainment. Transportation and healthcare companies slashed borrowing, however, by 14 and 13% respectively.

The rise in the index “is not enough to say ‘we’re off to the races,'” said PayNet’s CEO and founder. But at least “we’re not going into contraction mode,” he added.

Movements in the index typically correspond with changes in gross domestic product growth a Quarter or 2 ahead.

The US economy grew at a 1.4% annual pace in Q-1, and the Atlanta Fed projects 2nd-quarter expansion at 3%.

A separate barometer of small companies’ financial health suggested companies are finding it easier to pay off old loans.

The share of loans more than 30 days past due was 1.69% in May, down from a month earlier, PayNet data showed.

Small business borrowing is a Key barometer of growth because those companies tend to do much of the hiring that drives economic gains.

PayNet collects real-time loan information such as origination’s and delinquencies from more than 325 leading US lenders.

Thursday, the US major stock market indexes finished at:  DJIA -158.13 at 21320.04, NAS Comp -61.39 at 6089.43, S&P 500 -22.79 at 2409.76

Volume: Trade on the NYSE came in at 878-M/shares exchanged.

  • NAS Comp +13.1% YTD
  • S&P 500 +7.6% YTD
  • DJIA +7.9% YTD
  • Russell 2000 +3.2% YTD

HeffX-LTN Technical Analysis for US Stock Market Indexes

Date Symbol Price Technical Analysis Support Resistance
6 July 2017 QQQ 136.93 Neutral (-0.15) 135.78 137.67
6 July 2017 DIA 213.8 Bullish (0.38) 213.47 214.92
 6 July 2017 SPY 241.64 Neutral (0.23) 239.15 241.98

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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