The Credit Managers’ Index (CMI) number for September is nearly the same as in August, falling by the narrowest of margins.
The gain made in the CMI in August showed an economy with an overall better performance than earlier in the year, and was the highest since for February. The sense was that some key areas were showing improvement, as the CMI has only been at or above this level three times this year. It can be asserted from September’s CMI (now available at www.nacm.org) that the momentum from late summer is carrying forward to some extent into the fall.
This occurred even with a slight decline in the favorable factor index due mostly to a reversal of the sales number, which newly unveiled statistics indicate is one of the worst two results of 2012. It may be the most worrisome of the figures going forward because, without some expansion in sales, the other categories may start to slump as well. Still, there was plenty of positive news in categories including new credit applications, amount of credit extended and dollars beyond terms.