Loan delinquencies among Brazil’s businesses reached a record high in July alongside a sluggish local economy, credit analysis agency Serasa reported. Serasa estimated loan delinquencies at 3.57 million, more than half of the seven million registered with the agency.  More than 90% of the companies showing delinquency were small or medium-sized companies.  Serasa said 47% of the companies were in the commercial segment, while 43% were in the service sector and 9% were industries.  The Southeastern region of the country represented 51% of loan delinquencies, while the Northeast represented 18% and the South, 17%.  According to Serasa analysts, the high rate of delinquency was caused by rising financial and labor costs amid an environment of recession. According to the official IBGE statistics institute, Brazil’s economy contracted in the second  quarter of the year by 0.6%.  Meanwhile, the central bank’s latest weekly market survey shows the economy should expand only 0.3% in 2014 after 2.3% growth seen in 2013.