PayNet reports that the PayNet Canadian Small Business Lending Index (CSBLI) increased 1% to 123.8 in June 2017 from 122 in May, the third month in a row of year-over-year increases. Compared to May 2016 the CSBLI is up 5%.

“Investment growth for Canadian small business has increased at a nearly 21% annualized rate,” states William Phelan, President of PayNet, Inc. “Canadian private businesses are helping drive healthy broad-based growth across industry segments and geographic regions.”

The Construction sector investment increased 4% which continues to reflect improvements in housing starts and prices throughout much of the country.   Accommodation and Food fell 5% while all other segments were within 3% of May 2017. Growth geographically remains broad based as well with British Columbia and Quebec showed the largest increases from May, both up 3%, while Atlantic Canada exhibited the largest decrease (3%).

The financial health of Canadian companies continues to maintain stability with relatively few signs of deterioration of financial health. The PayNet Canadian Small Business Delinquency Index (CSBDI) 31-180 days past due held steady at 1.09% in June from May 2017. Compared to June 2016, delinquency decreased (10 bps).

Agriculture delinquency decreased by (11 bps), the largest monthly decrease amongst all industries in June.

Manitoba delinquency decreased (16 bps) while Quebec delinquency increased (5 bps). All other Provinces showed changes of 3 bps or less.

“Canadian small business conditions ended the first half of the year on a positive note,” Phelan added. “Financial health is great, but sustained growth depends on future policy and investment decisions.”