U.S. businesses continue to demonstrate robust growth, as reflected by increased borrowing during the third quarter of the year, the Commercial Finance Association (CFA) announced.

According to the CFA’s latest Quarterly Asset-Based Lending (ABL) Index, total committed credit lines increased 2% over 2Q2017 and 5% over the same quarter in 2016. New credit commitments increased 63% over 2Q2017, the largest increase in the reporting period.

This data seems to indicate borrowers have an increased need for capital to support expanding levels of inventory and accounts receivable, which is a positive sign for the economy.

Another indicator of strength, credit quality, was also strong in the quarter. This is evidenced by Gross Write-Offs as a percentage of Total Outstandings which approached historic lows and, to a lesser extent, by Non-Accruing Loans as a percentage of Total Outstandings which were also negligible.

“The healthy growth in commitments year over year coupled with continual strong portfolio credit quality is a positive sign for both the industry and the economy,” said David Grende, Chair of CFA’s Data Subcommittee and President & CEO of Siena Lending Group.

“CFA’s Quarterly Asset-Based Lending Index provides our stakeholders with vital data they need to understand key marketplace trends. It also reflects the important role secured lending plays in the economy,” said Richard D. Gumbrecht, CFA CEO.

The Quarterly Asset-Based Lending Index is conducted for the CFA by Westat, an independent market research firm. CFA has tracked secured lending activity and published the Quarterly Asset-Based Lending Index since March 2008 to provide insight on national commercial lending trends.

A full copy of CFA’s Quarterly Asset-Based Lending Index is available HERE.