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WAIN Street Business Default Index shows business credit quality strongest in four years
Business Default Index improves by 0.19% to close 2013 at 6.25% with broad improvements across industry, geography and business size
"2013 ended on a high note with most economic indicators painting a picture of better days ahead. Businesses fared better and that was reflected in their credit performance during the year", said Vidur Dhanda, Publisher, WAIN Street. "A frequent question in 2013 was 'Are we there yet?' and the year ended with another question: Will the job market play spoiler?" continued Dhanda as he struck a cautious note about "weak wage growth and low labor force participation rate being a drag on consumer spending".
Highlights from the Q4 2013 report:
-- LA, SD, AK, and VA businesses lead the nation in credit quality
-- NV, AZ, and IL businesses have the worst credit quality
-- Manufacturing sector businesses have highest default rate
-- "Leisure & hospitality"
-- Mining sector businesses posted biggest improvement in credit quality
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.