According to data from PayNet released on Monday, Canadian small business lending index climbed to 142.0 in September from 131.8 in August. On a yearly basis, the index rose 14% in September.

"We are seeing that the small businesses are becoming an engine of growth for the Canadian economy at a time when the big companies, some of them in the energy sector, are contracting," PayNet's president Bill Phelan said. He added that small businesses "are a good leading economic indicator".

The index of Canadian medium-sized businesses declined to 213.6 in September from 220.7 in August. On a yearly basis, the index fell 12% in September.