According to the latest survey reports released by Thomson Reuters/PayNet Small Business Lending Index, there is an increase of 2% in the borrowings by small businesses in U.S, in July.
As per the data released, in August, there is an increase in U.S consumer confidence and hence home prices gained more than expected. The above developments act as a respite for investors, showing the signs of economic recovery from the worst recession in decades.
But, with the government’s report on key monthly jobs, expected to be released soon, shows that in August, the unemployment rate rose to 9.6%, as the economy shed 100,000 jobs. This situation is very alarming and may even boost the current recession. But as per the separate data from PayNet, fewer companies have not yet done certain loan repayments. Due to the above reason, the economy is out of imminent danger of falling back in to recession, according to the analysts of PayNet.
According to PayNet, the accounts showing delinquencies are as follows:
- Accounts having moderate delinquency (behind by 30 days or more) decreased to 2.98% in July from 3.06% in June.
- Accounts, having severe delinquency, (90 days or more behind in payment) were down to 0.90% in July from 1.01% in June.
- Accounts which are unlikely to ever get paid (behind 180 days or more), decreased to 0.85% of total receivables in July, from 0.89% in June.