By Leah Schnurr
OTTAWA, Sept 16 (Reuters) - Commercial borrowing by small
businesses in Canada rose at the end of the second quarter, data
from PayNet showed on Wednesday, underscoring the expectation
the economy is recovering after a mild recession in the first
half of the year.
PayNet's Canadian Small Business Lending Index rose to 135.8
in June from 134.0 in May.
While there was slowing or no growth in the provinces most
exposed to the slump in the price of oil, that was offset by
growth in other parts of the country, PayNet's president Bill
Phelan said.
There is also a transition occurring with growth moving from
commodities-related firms to consumer ones, he said. The PayNet
data was the latest to suggest that although the economy shrank
in the first half of the year, it headed into the third quarter
on stronger footing.
"We see it as a short-lived, not full-blown recession," said
Phelan.
Moderate loan delinquencies - those that are behind in
payments by 30 days or more - edged up to 1.08 percent of loans
in June from 1.01 percent the month before.
Loans that were more than 90 days late similarly rose to
0.32 percent from 0.29 percent. Even so, delinquency rates are
still quite low, suggesting the financial health of Canadian
companies is strong, said Phelan.
(Editing by Diane Craft)