NACM’s Credit Managers’ Index (CMI) for April, which will be released on NACM’s website Friday, is expected to continue with positive news and to challenge for the best level of the calendar year.
The most recent CMI peak came in July and, following a late-summer/early-fall decline in form, the index began a largely positive growth trend again in November, even as a few key categories (e.g., sales) lost steam.
“The thinking was that a real corner had been turned and the remainder of the year would be equally strong,” said NACM Economist Chris Kuehl, Ph.D of July’s performance. “Then, momentum was lost in August. The difference between last summer and now is that there has been a consistent build in the data, which would suggest more sustainability.”
Take particular note Friday of the unfavorable factors categories, of which most have been threatening to enter expansion territory after a lengthy lull.
“This [April’s CMI] would be the first time that all the unfavorable readings have all been above 50 in close to two years, and that would be a significant development,” said Kuehl. “To some degree, these numbers would suggest that companies that were on the ropes have finally reached the end. They are no longer driving the data down.”
- NACM staff
Click here Friday morning (ET) to view NACM’s full April CMI report. Click here to view the CMI archive.