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Overall, index gains indicates small businesses may be emerging despite choppy economic waters. While we are cautiously optimistic for a stronger second half of the year, small business owners face a protracted economic recovery and the impact from the recent federal government shutdown.
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What’s driving the US small business sector?
D&B Small Business Health Index
D&B’s monthly Small Business Health Index rose 0.8
percent to an overall index value of 96.2 in August
2013, the first upturn since February. The improvement
reverses several months of sluggish small business sector
performance, largely driven by strong gains in Business
Services (up 2.8 percent to 109.9), Retail (up 1.8 percent
to 99.4), and Personal Services (up 1.2 percent to 95.2).
Only the Automotive segment declined in August
(down 0.8 percent to 95.3). Although the Index has
shown small signs of optimism over the summer months,
the across-the-board gains in August suggests small
businesses may be standing on more solid fiscal ground
heading into the fourth quarter.
Fewer small businesses closed their doors in August,
evidenced by improvement in the D&B Failure Ratio
index (up 0.3 percent to 141.1). This marked the first
upward movement since March.
More small businesses paid their bills on time in August.
The D&B Payment Delinquency index improved 1.7
percent to 118.7.
October 2013
March 2013
Small Business Health Index: Overall
Source: D&B Global Data, Insights & Analytics
0
20
40
60
80
100
120
August 13Dec 10Dec 08Dec 06Dec 04
August
0.8points
Credit Card Delinquency Improves
Fewer Small Businesses Fail
140
145
150
155
160
Aug 2013July 2013June 2013May 2013
More On-Time Payments
Credit Card Use Declines
80
95
110
125
140
Aug 2013July 2013June 2013May 2013
77
78
79
80
81
Aug 2013July 2013June 2013May 201342
44
46
48
50
Aug 2013July 2013June 2013May 2013
Credit Card Delinquency Improves
Fewer Small Businesses Fail
140
145
150
155
160
Aug 2013July 2013June 2013May 2013
More On-Time Payments
Credit Card Use Declines
80
95
110
125
140
Aug 2013July 2013June 2013May 2013
77
78
79
80
81
Aug 2013July 2013June 2013May 201342
44
46
48
50
Aug 2013July 2013June 2013May 2013
www.dnb.com
A 0.7 percent improvement in the D&B Credit Card
Delinquency index (to a value of 46.1) suggests more
small businesses are paying their credit card bills on time.
Overall, Index gains indicate small businesses may be emerging despite choppy economic waters. While we are cautiously optimistic for a stronger second half of the year, small business owners face a protracted economic recovery and the impact from the recent federal government shutdown.
D&B’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 were less dependent on credit cards in
August, signaling potentially greater access to traditional
forms of credit. Consequently, the D&B Credit Card
Utilization index improved 0.5 percent to 79.
Credit Card Delinquency Improves
Fewer Small Businesses Fail
140
145
150
155
160
Aug 2013July 2013June 2013May 2013
More On-Time Payments
Credit Card Use Declines
80
95
110
125
140
Aug 2013July 2013June 2013May 2013
77
78
79
80
81
Aug 2013July 2013June 2013May 201342
44
46
48
50
Aug 2013July 2013June 2013May 2013
Credit Card Delinquency Improves
Fewer Small Businesses Fail
140
145
150
155
160
Aug 2013July 2013June 2013May 2013
More On-Time Payments
Credit Card Use Declines
80
95
110
125
140
Aug 2013July 2013June 2013May 2013
77
78
79
80
81
Aug 2013July 2013June 2013May 201342
44
46
48
50
Aug 2013July 2013June 2013May 2013
What is the Small Business Health Index?
© Dun & Bradstreet, Inc. 2013. All rights reserved. (DB-3648 10/13)
D&B’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 businesses?
October 2013
