Lending activity to small businesses in Canada declined in October as a retreat in customer-oriented industries outpaced gains in the manufacturing sector, according to a report released Wednesday.
The PayNet Canadian Small Business Lending Index fell to 113.6 from 116.4 in September, an index that has declined in eight out of 10 months in 2016 so far. Lending to medium-sized firms similarly fell to 208.8 in October from 222.4.
The index also indicated that, while borrowing by firms in consumer-related areas such as retail and food and accommodation slowed, the index for manufacturers increased to 66.1 from 65.5, something experts see as a good sign for an economy wrestling with the result of lower oil prices
Delinquency rates were also encouraging with the number of firms that were 30 days or more behind on their loans falling to 1.1% in October from 1.2% the month before.
Companies that were late by 90 days or more held steady at 0.4%.
