CMI Preview: March Credit Managers' Index to Trend Positive


Statistics to be released tomorrow outlining results of the Credit Managers’ Index (CMI) for March could give credence to an economic recovery that is well-founded and real.

It appears the story of the latest index will be one of improvements in the area of unfavorable factors. This is expected to be particularly noticeable in a pair of subcategories: accounts placed for collection and disputes. Dollar amount of customer deduction is also a category expected to track at better levels than most of the last year, as well.

Perhaps a big part of the positive momentum is that the weeding out process, so to speak, has almost run its course from a business standpoint. NACM Economist Chris Kuehl, PhD, said most of the weakest, poorest run companies have “gone by the wayside,” which has afforded opportunities for the survivors.

“The fact is that, during a boom period, there are many companies surviving and even thriving in spite of themselves,” Kuehl said. “They are not all that well run and succeed mostly because everybody is succeeding in the boom.” He added that it is now the point when the stronger competitors are able to finally reassert themselves and get the pricing they need to succeed long term.

Check back tomorrow at NACM’s website (www.nacm.org) for the full statistics and analysis of this month’s CMI.

Brian Shappell, CBA, NACM staff writer

No comments:

Post a Comment