The October report of NACM’s Credit Managers’ Index (CMI) is highlighted by a return to a respectable status. The readings, now available at the NACM website, are back to highs seen at the start of the year.
Though off the pace set in the summer, the index of favorable factors is trending in the right direction again. The index of unfavorable also rose impressively from September’s disappointing level, the lowest point reached in almost two years. 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,” said 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…The 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.”
Within the favorable factors, look for particularly positive movement in sales and dollar collections. On the unfavorable factors side, of note were improvements in rejection of credit applications and accounts placed for collection.
“The sense overall is that much of the crisis atmosphere has dissipated and most creditors are staying current as far as their obligations are concerned,” Kuehl said. “The rapid rebound this month is support for the notion that last month was an anomaly and perhaps a reaction to some of the issues that emerged globally toward the end of summer.”
full breakdown of the manufacturing and service sector data and graphics, view
the complete October 2014 report at http://web.nacm.org/CMI/PDF/CMIcurrent.pdf.
CMI archives may also be viewed on NACM’s website at http://web.nacm.org/cmi/cmi.asp.