Flagging Enthusiasm Could Show Up in Otherwise Strong March Credit Managers’ Index
The business outlook from credit managers appears to have stepped back a bit from February’s outstanding showing, according to preliminary data in NACM’s latest Credit Managers’ Index (CMI), which will be released Friday morning at nacm.org.
Expect a slight dip in March’s combined CMI score brought on by questions surrounding an anticipated boom economy. Preliminary CMI data shows trade creditors saw slumping sales and new credit applications, but one should look to weigh these drops against readings from a year ago to get a better sense of the ongoing strength in the favorable categories, NACM Economist Chris Kuehl, Ph.D., said. Also look for a turnabout in recent trends of improving favorable category readings and declining unfavorable numbers.
Rejections of credit applications is another category that looks to show signs of improvement in March and could be significant considering a lower level of applications, he said. Parallels between dollar amount beyond terms and dollar collections readings could foretell some areas for concern going forward. Still, “…it is encouraging to note…” that a couple of unfavorable categories, including accounts placed for collection, look close to reaching a 50 level reading, Kuehl said.
– Nicholas Stern, senior editor
For a complete breakdown of the manufacturing and service sector data and graphics, view the March 2017 report on Friday morning by clicking here. CMI archives may also be viewed on NACM’s website.