Paynet: Small businesses in better shape than in 2005

12/13/2011

According to the Thomson Reuters/PayNet Small Business Lending Index, October marked the 15th straight month of double-digit growth, jumping 20 percent from September figures, Reuters reports.

This pleases PayNet president William Phelan, who notes that "There's underlying strength in the U.S. economy that's not being reported by stock market indices," adding that America is currently undergoing a "new economic order."

For example, small businesses are going out of business at a vastly declined rate compared to 2009. Specifically, it's predicted that by the end of 2012, around 3 percent of companies will have gone under, compared to 7 percent three years ago.

The most promising sectors for growth include agriculture, manufacturing and construction, while new truck production is now above pre-recession levels.

In terms of manufacturing, national factory activity rose from 50.8 index points in October to 52.7 last month, the news source notes in a separate article, citing data from Institute for Supply Management.

Furthermore, the Commerce Department reported construction spending was up 0.8 percent last month.