Canada small business lending decreases in September

By anna smith

Lending activity to Canadian small businesses decreased in September. Conversely, borrowing picked up for medium-sized companies, a report showed on Thursday. The results suggest that overall economic conditions were improving.

The PayNet Canadian Small Business Lending Index fell from 119.7 in August to 117.7, posting a drop after increasing for the previous two months.

Alternatively, the gauge of lending increased to 224.1 from 219.3 at medium-sized companies. Lending also increased by 5 percent compared to a year before, the index's first year-over-year increase since June 2015.

Canada's economy was in a brief recession last year after being hit by the drop in oil prices and reduced investment in the energy sector has hindered smaller businesses.

September's increase in manufacturing sector lending and in the oil-sensitive province of Alberta suggested the economy was adapting, commented PayNet President Bill Phelan.

He said: "It seems like a little bit of a setback, but the reality is things are looking much more positive.”

Lending to small businesses picked up in Alberta, which has heavily impacted by the oil price slump, with the measure rising to 165.0 from 164.4.

Ontario, which had been helping to drive business growth, edged downward to 150.0 from 152.7.

Lending activity to small manufacturing firms increased from 65.2 to 65.8. The accommodation and food industry, which had been strong as the lower Canadian dollar attracted tourists, declined to 232.3 from 242.4.
 

 

Follow @BizReviewCANADA

Read the November 2016 issue of Business Review USA & Canada magazine

Share

Featured Articles

Rise of the Chief Information Security Officer (CISO)

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the new age of the CISO

UAE building cybersecurity fortress for a safer world

Exclusive: His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on bold plans to build the world’s most secure digital society

The future of cybersecurity must be built on the basics

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the future of cybersecurity

10 of the best speakers at Procurement & Supply Chain LIVE

Leadership & Strategy

10 apps to support staff on World Mental Health Day

Leadership & Strategy

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Leadership & Strategy