‘Credit Managers’ Index’ rallies
U.S.--The Credit Managers’ Index (CMI) from the National Association of Credit Management (NACM) returned to a respectable status, jumping more than two points from 54.9 to 57.0. The readings are back to highs seen at the start of the year. The index of favorable factors cleared 60 comfortably and now sits at 62.6, which is still off the pace set in July and August, but is trending in the right direction again.
The fall of the index of unfavorable factors to 50.9 last month was concerning as it was the lowest point reached in almost two years, but its impressive gain this month to 53.2 reaches back to March readings. This means that the concerns about the state of creditors have eased a little.
“The rebound in the data this month could be referred to as stunning were it not that last month felt like an anomaly,” says NACM economist Chris Kuehl, PhD. “Given the progress made through the course of the year, many were shocked at the low numbers registered in September and theories abounded to explain the slump—everything from reaction to politics to the impact of the weather.” Most analysts attributed the slow progress to events outside the US, which remain a concern in the overall business community. The US has been affected by the collapse of the European economy and the slow progress in China and other parts of Asia. “This global slowdown is still a factor and will likely put something of a damper on the US economy through the rest of the year and into next, but the domestic economy is showing some resilience and that is reflected in the numbers for October’s CMI,” Kuehl says. Read more