While the overall index tracks with pre-recession performance, small businesses continue to struggle in key areas. A drop in the credit card utilization subcomponent, typically a bellwether for larger Index performance, is cause for concern. Nevertheless, a rise in the credit card delinquincy subcomponent hints that small businesses are steering their fiscal ships in the right direction. A few more months may reveal whether the small business sector is truly headed toward complete recovery.

1. What’s driving the US
small business sector?
DB Small Business Health Index
The small business sector maintained its pre-recession
strength in March 2013 despite a slight drop in DB’s
monthly Small Business Health Index. Nearly all major
sectors declined, with the exception of real estate and
business services. The automotive and transportation
sectors suffered significant declines in March compared
to February. In contrast, robust improvement in the
real estate sector (following strong construction
performance in February) signals a fast-healing housing
industry. The continued rise in pending home sales
confirms this trend and suggests housing could be a
key growth driver for small businesses in 2013.
More small businesses in nearly all sectors closed
their doors in March, indicating pre-recession
durability remains a remote objective for many.
Small businesses on the whole continued to pay their
bills on time for the third straight month, with only
slight declines in the manufacturing, construction,
and automotive sectors.
May 2013
March 2013
Small Business Health Index: Overall
Source: DB Global Data, Insights Analytics
0
20
40
60
80
100
120
Mar 13Dec 10Dec 08Dec 06Dec 04
M
arch
0.79points
Credit Card Delinquency
Small Business Failures
140
145
150
155
160
Mar 2013Feb 2013Jan 2013Dec 2012
Payment Delinquency
Credit Card Utilization
80
95
110
125
140
Mar 2013Feb 2013Jan 2013Dec 2012
Credit Card Delinquency
Small Business Failures
140
145
150
155
160
Mar 2013Feb 2013Jan 2013Dec 2012
Payment Delinquency
Credit Card Utilization
80
95
110
125
140
Mar 2013Feb 2013Jan 2013Dec 2012
www.dnb.com

2. May 2013
Fewer small businesses struggled with delinquent
credit card balances in March, a bright spot in the
overall Index after struggling through much of 2012.
While the overall Index tracks with pre-recession performance, small businesses continue to struggle
in key areas. A drop in the credit card utilization subcomponent, typically a bellwether for larger Index
performance, is cause for concern. Nevertheless, a rise in the credit card delinquency subcomponent
hints that small businesses are steering their fiscal ships in the right direction. A few more months
may reveal whether the small business sector is truly headed toward complete recovery.
DB’s monthly Small Business Health Index (SBHI) measures
small business health through payment patterns, failure
rates, and credit utilization. The SBHI follows a sampling of
all active small businesses with fewer than 100 employees
and combines pro- and counter-cyclical elements to provide
a simple, representative number. Using 2004 as the base year
(Index value 100), improvement is designated by an Index
value above 100.
More small businesses depended on credit cards
in March, evidencing shrinking access to traditional
forms of credit.
Credit Card Delinquency
140
145
Mar 2013Feb 2013Jan 2013Dec 2012
Credit Card Utilization
80
95
Mar 2013Feb 2013Jan 2013Dec 2012
77
78
79
80
81
Mar 2013Feb 2013Jan 2013Dec 2012
42
44
46
48
50
Mar 2013Feb 2013Jan 2013Dec 2012
Credit Card Delinquency
140
145
Mar 2013Feb 2013Jan 2013Dec 2012
Credit Card Utilization
80
95
Mar 2013Feb 2013Jan 2013Dec 2012
77
78
79
80
81
Mar 2013Feb 2013Jan 2013Dec 2012
42
44
46
48
50
Mar 2013Feb 2013Jan 2013Dec 2012
What is the Small Business Health Index?
© Dun Bradstreet, Inc. 2013. All rights reserved. (DB-3515 5/13)
DB’s informed perspective puts the future in focus, helping you protect,
grow, and empower your business. To learn more, visit www.dnb.com
www.dnb.com
What can we expect for small business?