Small businesses in particular sectors – namely real estate, automotive, and growth; however, a slowing housing sector remains a concern.

1. What’s driving the US
small business sector?
DB Small Business Health Index
DB’s monthly Small Business Health Index dropped
nearly 1 point in July 2013, despite diverse performance
across major industry groups. The decline brought the
Index to its lowest level so far this year, clouding earlier
optimism. Nonetheless, key bright spots emerged, including
continued strong growth in the real estate, automotive, and
transportation categories. The Dow Jones Transportation
Average – now at its highest point since the third quarter
of 2012 – underscores the improving health of small
businesses in the transportation segment. In contrast, the
manufacturing industry suffered the largest drop of the
month, a concerning turn of events since that segment
showed early signs of post-recession recovery.
Small businesses in general continued to close their
doors in July, although the real estate, automotive,
and transportation segments saw fewer failures.
Small business owners struggled to make on-time
bill payments, following improvement among major
industries in June.
September 2013
March 2013
Small Business Health Index: Overall
Source: DB Global Data, Insights Analytics
0
20
40
60
80
100
120
July 13Dec 10Dec 08Dec 06Dec 04
J
uly
.7
points
Credit Card Delinquency
Small Business Failures
140
145
150
155
160
July 2013June 2013May 2013Apr 2013
Payment Delinquency
Credit Card Utilization
80
95
110
125
140
July 2013June 2013May 2013Apr 2013
Credit Card Delinquency
Small Business Failures
140
145
150
155
160
July 2013June 2013May 2013Apr 2013
Payment Delinquency
Credit Card Utilization
80
95
110
125
140
July 2013June 2013May 2013Apr 2013
www.dnb.com

2. Small businesses across the industry spectrum
continued to pay their credit card bills on time in July,
a significant bright spot.
Small businesses in particular sectors – namely real estate, automotive, and
transportation – appear to be on the road toward sustainable growth. Overall, the
economy mirrors performance in the Small Business Health Index. On the bright side,
a spike in exports and business development bodes well for accelerated economic
growth; however, a slowing housing sector remains a concern. Time will tell which
trend dominates as small businesses enter the final quarter of 2013.
DB’s monthly Small Business Health Index (SBHI) measures
small business health through payment patterns, failure
rates, and credit utilization. The SBHI follows a sampling of
all active small businesses with fewer than 100 employees
and combines pro- and counter-cyclical elements to provide
a simple, representative number. Using 2004 as the base year
(Index value 100), improvement is designated by an Index
value above 100.
Small businesses remained dependent on credit cards,
signaling deteriorating credit conditions.
Credit Card Delinquency
140
145
July 2013June 2013May 2013Apr 2013
Credit Card Utilization
80
95
July 2013June 2013May 2013Apr 2013
77
78
79
80
81
July 2013June 2013May 2013Apr 2013
42
44
46
48
50
July 2013June 2013May 2013Apr 2013
Credit Card Delinquency
140
145
July 2013June 2013May 2013Apr 2013
Credit Card Utilization
80
95
July 2013June 2013May 2013Apr 2013
77
78
79
80
81
July 2013June 2013May 2013Apr 2013
42
44
46
48
50
July 2013June 2013May 2013Apr 2013
What is the Small Business Health Index?
© Dun Bradstreet, Inc. 2013. All rights reserved. (DB-3591 9/13)
DB’s informed perspective puts the future in focus, helping you protect,
grow, and empower your business. To learn more, visit www.dnb.com
www.dnb.com
What can we expect for small business?
September 2013