Investing.com - Financial Markets Worldwide
📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Canadian small business lending falls again in April -PayNet

Published 2016-06-15, 05:00 a/m
© Reuters. Canadian small business lending falls again in April -PayNet

OTTAWA, June 15 (Reuters) - Borrowing activity by Canadian
small businesses fell for the fifth consecutive month in April,
data from PayNet showed on Wednesday, pointing to an economy
that is struggling to regain momentum after the steep drop in
oil prices over the past two years.
PayNet's Canadian small business lending index declined to
117.5 in April from 121.7 the month before. A measure of lending
to medium-sized businesses also fell to 209.4 from 213.5.
Monthly declines were seen in every industry except the
wholesale sector, which edged up to 164.2 from 162.4. The
picture was similarly bleak across regions, with only Manitoba
rising on the month.
"What we're looking at is slower GDP and probably lower
credit quality for the future in Canada," said PayNet President
Bill Phelan.
"The contagion is broadening and impacting the smallest
companies, which are the leading bellwethers for where GDP is
going," said Phelan.
Canada was in a mild recession last year as the
oil-exporting country was hit by the drop in commodity prices.
While growth was relatively strong at the start of 2016,
economists and policymakers expect the second quarter will slow,
partly due to the impact of last month's wildfires in Alberta.
The 30-day delinquency rate for small businesses edged up to
1.17 percent, the highest level in four years. The amount of
loans that were more than 90 days behind on payments dipped to
0.31 percent, but Phelan said he expects to see that move higher
in the coming months.

Latest comments

Install Our App
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.