U.S. small businesses increased their borrowing in September, an index released on Monday showed.
That borrowing is a good sign that companies are confident that U.S. consumer spending will increase heading into the holiday shopping season.
The Thomson Reuters/PayNet Small Business Lending Index increased to 140.4 in September, a sharpt increase from 135.6 reading in August.
The index is also up 11% from a year earlier, led by firms borrowing in the transportation, warehousing, construction, accommodation, food, healthcare and real estate industries.
“It’s consumer, consumer, consumer,” said Bill Phelan, President of PayNet. “This above-average growth trend means that small business is going to deliver material amounts of growth to GDP in the fourth quarter.”
U.S. GDP growth slowed to a 1.5% annual pace last quarter, but consumer spending was up.
The delinquency rate on loans more than 30 days past due increased to 1.45% in September from 1.44% the prior month.
PayNet’s numbers arrive by way of more than 250 leading U.S. lenders.