Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Canadian small business lending climbs for 5th month in June -PayNet

Published 2017-08-15, 05:00 a/m
Updated 2017-08-15, 05:00 a/m
© Reuters.  Canadian small business lending climbs for 5th month in June -PayNet

© Reuters. Canadian small business lending climbs for 5th month in June -PayNet

TORONTO, Aug 15 (Reuters) - Lending to Canadian small businesses rose for a fifth straight month in June on stronger activity in construction and other major industries, data showed on Tuesday, suggesting that companies are adding to solid growth in the domestic economy.

The PayNet Small Business Lending Index rose to 123.8 in June from 122.0 the month before, while the annual gain accelerated to 5 percent from 3 percent in May.

"This looks like a very positive report for the Canadian economy," said PayNet President Bill Phelan. "These privately held companies are driving healthy growth in the Canadian economy and it's broad-based growth."

The index of lending to construction companies rose to 145.3 from 140.2 as groundbreaking on new homes has been strong this year, despite signs of cooling in some parts of Canada's housing market. and transportation sector lending also climbed, but manufacturing dipped for a second straight month.

Diversification across industries will make the economy "more resilient through economic cycles," while growth in both the west and the east of the country adds to the strength of the data, Phelan said.

Lending increased in Ontario, Quebec, British Columbia and Alberta, the country's four most populous provinces.

Strengthening of the domestic economy prompted the Bank of Canada to raise interest rates last month for the first time in nearly seven years. The central bank expects the economy to grow at a 3 percent annualized pace in the second quarter after a 3.7 percent first-quarter expansion. to medium-sized business dropped in June and the annual rate slowed, but the pace was a still-solid 3 percent.

The financial health of Canadian companies continued to look strong, with the share of small companies that were behind 30 days or more on their loans holding steady at 1.09 percent. Those that were 90 days or more in arrears also held steady, at 0.32 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.