According to data released by PayNet in May, U.S. small business lending activity declined in April. The Thomson Reuters/PayNet Small Business Lending Index, which measures small business loan volumes, fell to 129.0, down from a downwardly revised 135.1 in March. This marked the seventh decline in the past ten months, reflecting persistently weak financing demand among small businesses.

PayNet President Bill Phelan stated that the decline in lending activity may signal 'slower future economic growth.' The index typically maintains a leading correlation of one to two quarters with U.S. gross domestic product (GDP) growth, so its recent trend has drawn market attention.

Although current economic data still shows a robust job market, the continued contraction in small business lending may serve as a warning for future consumption and investment activity. Analysts point out that small businesses, as an important engine of the U.S. economy, often reflect turning points in the business cycle in advance through changes in their financing appetite.

For more discussion on economic trends, please refer to the related report link:Reuters Original。