Longmeadow, MA, December 23, 2013 --(PR.com
)-- WAIN Street reported Friday that the Business Default Index value for November 2013 was 5.90%—a month-over-month improvement of 0.16%. The index is quoted as a seasonally adjusted, annualized default rate. An increase in the index corresponds to deterioration in business credit quality. The improvement was narrow with most businesses maintaining their credit performance during the month. All industry sectors improved although, geographic changes were uneven.
“The economy strengthened by most measures—jobs, retail sales, housing and manufacturing. General business conditions improved and businesses continued to fare better in meeting their financial obligations,” said Vidur Dhanda, Publisher, WAIN Street. “However, November painted a puzzling picture of consumers continuing to spend more, feeling less confident of their future, and having a dimmer view of their present situation,” continued Dhanda as he urged caution against “becoming complacent and allowing weaker businesses to suffer due to neglect.”
Highlights from the December 2013 report:
-- LA, AK, SD and VA businesses lead nation in credit quality
-- AZ and NV business default rates more than double national rate
-- MS, GA and AL businesses decrease default rate by nearly 5% in last 12 months
-- Construction sector businesses post biggest improvement in credit quality in last 12 months
-- Information sector businesses have lowest default rate
The WAIN Street Business Default Index is computed monthly based on the credit performance of nearly 18 million US businesses that have been tracked by WAIN Street for over 12 months. WAIN Street’s newsletter, Taking the Pulse, helps readers peel back the layers and zoom into the nuances and variations in business credit quality.