What’s driving the US
small business sector?
DB Small Business Health Index
DB’s Small Business Health Index declined near...
With the exception of the automotive sector, more small
businesses struggled with making credit-card payments
on time in M...
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D&B Small Business Health Index (July 2013)

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D&B’s Small Business Health Index declined nearly 2 points in May 2013, revealing continued challenges for the small business sector. The across-the-board decline brought the monthly Index below May 2012 levels, and marked the third consecutive decrease since March 2013.

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D&B Small Business Health Index (July 2013)

  1. 1. What’s driving the US small business sector? DB Small Business Health Index DB’s Small Business Health Index declined nearly 2 points in May 2013, revealing continued challenges for the small business sector.The across-the-board decline brought the monthly Index below May 2012 levels, and marked the third consecutive decrease since March 2013. Business services and retail were among the subsectors driving the decline, although manufacturing and construction showed resilience. Despite encouraging increases in jobs and industrial production, the Index’s overall sluggishness likely results from other factors, including tepid growth in the nation’s GDP, consumer spending, and international trade. Ongoing cuts in government spending arguably continue to block such growth, and that could mean more choppy economic waters for small businesses through the rest of 2013. Small business failures, including bankruptcies and other closures, persisted for the third consecutive month in May, although the manufacturing sector bucked that trend. Small business owners struggled to pay their bills on time for the second consecutive month in May, indicating continued setbacks with income growth and cost overruns. July 2013 March 2013 Small Business Health Index: Overall Source: DB Global Data, Insights Analytics 0 20 40 60 80 100 120 May 13Dec 10Dec 08Dec 06Dec 04 M ay 1.6points Credit Card Delinquency Small Business Failures 140 145 150 155 160 May 2013Apr 2013Mar 2013Feb 2013 Payment Delinquency Credit Card Utilization 80 95 110 125 140 May 2013Apr 2013Mar 2013Feb 2013 Credit Card Delinquency Small Business Failures 140 145 150 155 160 May 2013Apr 2013Mar 2013Feb 2013 Payment Delinquency Credit Card Utilization 80 95 110 125 140 May 2013Apr 2013Mar 2013Feb 2013 www.dnb.com
  2. 2. With the exception of the automotive sector, more small businesses struggled with making credit-card payments on time in May. The Small Business Health Index’s discouraging May 2013 performance is counterbalanced by key bright spots. In particular, steady gains in new residential sales and spending in home construction could present important growth opportunities to small businesses in those sectors. Nevertheless, the Index’s choppy performance throughout the first five months of 2013 reflects a larger pattern of uneven economic growth – a pattern that is likely to linger. 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 relied more heavily on credit cards in May, suggesting a slight reduction in access to traditional lending sources. Credit Card Delinquency 140 145 May 2013Apr 2013Mar 2013Feb 2013 Credit Card Utilization 80 95 May 2013Apr 2013Mar 2013Feb 2013 77 78 79 80 81 May 2013Apr 2013Mar 2013Feb 2013 42 44 46 48 50 May 2013Apr 2013Mar 2013Feb 2013 Credit Card Delinquency 140 145 May 2013Apr 2013Mar 2013Feb 2013 Credit Card Utilization 80 95 May 2013Apr 2013Mar 2013Feb 2013 77 78 79 80 81 May 2013Apr 2013Mar 2013Feb 2013 42 44 46 48 50 May 2013Apr 2013Mar 2013Feb 2013 What is the Small Business Health Index? © Dun Bradstreet, Inc. 2013. All rights reserved. (DB-3550 7/13) 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? July 2013

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