COSTA MESA, Calif.,
Feb. 9, 2017 /PRNewswire/ -- While it
is still too early to say how the Trump administration will affect
small business owners, for now the outlook of lenders and business
owners appear to be stable and somewhat optimistic, based on
overall credit performance. Experian®, the leading
global information services company, and Moody's Analytics, a
leading independent provider of economic forecasting, today
announced that while small-business credit utilization rates remain
flat from the previous quarter, credit balances expanded broadly
and drove down delinquency rates to reveal a healthy lending
market.
The latest Experian/Moody's Analytics Main Street Report
reveals a positive finance market based on key factors from Q4
2016, which measure the overall health and well-being of the
small-business sector. According to the report, the fourth
quarter was defined by an increased willingness to lend, as results
show a spike in total loan balance growth: a 7.7 percent increase
from the third quarter and a 10.3 percent increase year over year.
Despite the balance growth, utilization rates among small
businesses remain just under 40 percent, leaving plenty of capacity
for small-business owners with current available credit.
"The overall health of the small-business sector could depend on
changing fiscal policies and how those policies will affect the
small-business owner," said Gavin
Harding, senior business consultant for Experian. "For
example, if the Federal Reserve tightens monetary policy faster
than anticipated, an interest rate shock could quickly cause
balance growth to slow and delinquencies to rise, delivering a jolt
to small business and consumption overall."
In a true testament to the improving economy, two of the
hardest-hit industries over the past few years — mining and
transportation/utility — are quickly showing signs of improvement.
Following OPEC's announcement of supply cuts in late November of
last year, oil prices ticked up, which has had a positive impact on
the mining and transportation industries. The fourth quarter showed
a sharp decline in delinquencies, falling 43 and 116 basis points,
respectively from the previous quarter.
"The business and credit cycles are in their sweet spots," said
Mark Zandi, chief economist for
Moody's Analytics. "The economy is near full-employment, credit is
flowing freely and credit quality is good and improving.
Increasingly confident small businesses are willing and able to
borrow more to help play their role powering economic growth."
Other sections in the Q4 2016 report include a detailed analysis
of:
- Small-business risk assessment strategies.
- Regional perspectives.
- Potential impacts from new fiscal and trade policies.
- Credit quality.
- A forecasted outlook for the coming months.
To get a copy of the latest Experian/Moody's Analytics Main
Street Report, visit
http://www.experian.com/business-information/landing/msr-q4-2016.html.
The full results of the report, as well as additional data and
insights on small-business health, will be presented in a webinar
on March 14 at 10 a.m.
Pacific/1 p.m. Eastern. To register
for the event or for more information, visit
http://www.experian.com/business-information/landing/msr-q4-2016.html.
About the Experian/Moody's Analytics Main Street
Report
Developed by Experian and Moody's Analytics, the
Experian/Moody's Analytics Main Street Report brings deep
insight into the overall financial well-being of the small-business
landscape, as well as providing commentary about what certain
trends mean for credit grantors and the small-business community as
a whole. Key factors comprised by the Main Street Report
include a combination of business credit data (credit balances,
delinquency rates, utilization rates, etc.) and macroeconomic
information (employment rates, income, retail sales, investments,
etc.).
About Moody's Analytics
Moody's Analytics helps
capital markets and risk management professionals worldwide respond
to an evolving marketplace with confidence. The company offers
unique tools and best practices for measuring and managing risk
through expertise and experience in credit analysis, economic
research and financial risk management. By providing leading-edge
software, advisory services and research, including the proprietary
analysis of Moody's Investors Service, Moody's Analytics integrates
and customizes its offerings to address specific business
challenges. Moody's Analytics is a subsidiary of Moody's
Corporation (NYSE: MCO), which reported revenue of $3.5 billion in 2015, employs approximately
10,900 people worldwide and maintains a presence in 36 countries.
Further information is available at
www.moodysanalytics.com.
About Experian
Experian is the world's leading global
information services company. During life's big moments — from
buying a home or a car, to sending a child to college, to growing a
business by connecting with new customers — we empower consumers
and our clients to manage their data with confidence. We help
individuals to take financial control and access financial
services, businesses to make smarter decisions and thrive, lenders
to lend more responsibly, and organizations to prevent identity
fraud and crime.
We have 17,000 people operating across 37 countries and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index. Learn more at
www.experianplc.com or visit our global content hub at our global
news blog for the latest news and insights from the company.
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian Information Solutions, Inc. Other
product and company names mentioned herein are the property of
their respective owners.
Contacts:
Roslyn
Whitehurst
Experian Public Relations
1
714 830 5578
Roslyn.Whitehurst@experian.com
Twitter: @RozWhitehurst
Katerina Soumilova
Moody's Analytics
Communications
1 212 553
1177
katerina.soumilova@moodys.com
Available Topic Expert(s): For information on the listed
expert(s), click appropriate link.
Gavin Harding:
www.profnetconnect.com/gavinharding
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SOURCE Experian