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D&B's Small Business Health Index (Sept. 2013)

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

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D&B's Small Business Health Index (Sept. 2013)

  1. 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. 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

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