Latest Experian/Moody's Analytics Small Business Credit Index shows unexpected improvement in small-business credit quality in first quarter Projections of small businesses struggling for the remainder of 2013 still hold PR Newswire COSTA MESA, Calif., May 21, 2013 COSTA MESA, Calif., May 21, 2013 /PRNewswire/ -- Experian^®, the leading global information services company, today announced that despite the threat of heavier tax burdens and sequestration, small-business credit conditions improved significantly during Q1 2013. According to the latest Experian/Moody's Analytics report, the Small Business Credit Index climbed 5.7 points in Q1 2013 to 109, up from 104.3 in the previous quarter. Details from the report showed that much of the first quarter improvement was fueled by lower delinquency rates and stronger consumer spending. (Photo: http://photos.prnewswire.com/prnh/20130521/LA17383) "Small-business credit conditions are improving, but only slowly and unevenly across the country," said Mark Zandi, chief economist at Moody's Analytics. "Much further progress this year will be difficult given the likely fallout from sizable tax increases and government spending cuts, but conditions are expected to improve next year once these fiscal headwinds begin to fade." Findings from the report show that small companies are faring considerably better in cities west of the Mississippi. This is driven in part by a resurgent housing market, while eastern cities have been more directly affected by cuts in government spending and the poor performance of Europe's economies. "Small businesses have reduced their levels of payment delinquency, and that is a good sign," said Dan Meder, vice president of Experian's Business Information Services. "Near-term pressure on consumer spending may adversely affect cash flow, so small businesses must continue to remain diligent in their payment behavior. By successfully meeting their payment obligations, they avoid negative repercussions on credit availability that could limit growth." Regionally, delinquency rates for small businesses in Houston, Texas; Phoenix, Ariz.; and San Diego, Calif., were significantly lower than the U.S. rate in Q1, whereas several major eastern cities are more than double the national average. At the state level, delinquency rates in Arizona, Utah, Colorado, Wyoming and Idaho were significantly lower than the U.S. average. To receive a copy of the full Experian/Moody's Analytics Small Business Credit Index report, visit http://www.experian.com/SmallBusinessCreditIndex. About the Experian/Moody's Analytics Small Business Credit Index Experian joined forces with Moody's Analytics, a leading independent provider of economic forecasting, to create a business index and detailed report that provides insight into the health of U.S. businesses. The Experian/Moody's Analytics Small Business Credit Index is reported quarterly to show fluctuations in the market and discuss factors that are impacting the business economy. About Experian's Business Information Services Experian's Business Information Services is a leader in providing data and predictive insights to organizations, helping them mitigate risk and improve profitability. The company's business database provides comprehensive, third-party-verified information on 99.9 percent of all U.S. companies. Experian provides market-leading tools that assist clients of all sizes in making real-time decisions, processing new applications, managing customer relationships and collecting on delinquent accounts. For more information about Experian's advanced business-to-business products and services, visit http://www.experian.com/b2b. About Experian Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft. Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil. For more information, visit http://www.experianplc.com. Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners. Contact: Roslyn Whitehurst Experian Public Relations 1 714 830 5578 email@example.com Twitter: @RozWhitehurst SOURCE Experian Website: http://www.experian.com
Latest Experian/Moody's Analytics Small Business Credit Index shows unexpected improvement in small-business credit quality in
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