News: General News

Fourth Quarter of 2018 Signals Potential Trouble

Wednesday, February 13, 2019  
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The fourth quarter capped a second year of solid performance and growth for small-business credit, but there are signs that the period of moderation experienced during the past two years is over, according to the latest Main Street Report from Experian and Moody’s Analytics. 

“Since the government shutdown has the potential to throw small-business lending a curveball in the first half of 2019, the outlook for small-business credit is neutral,” the report says. “Conditions were positive in the fourth quarter, but this may not last long. Delinquency rates remained mostly stable, with pockets of weakness spread out among regions and industries, notably construction in the Plains. In addition to the 35-day shutdown, rising interest rates, destabilizing trade policy and slowing home-price growth are potential trouble sources that are already starting to impact some regions.”

The report anticipates an increase in delinquencies in 2019 and that changing trade policies will contribute to a bumpy year for small businesses. See the full report