Business exuberance has faded a bit in May, reigniting concerns surrounding commercial credit factors, such as a slip in dollar collections from March, according to preliminary data in the latest NACM Credit Manager’s Index (CMI), which will be released Wednesday morning at nacm.org. May’s CMI results showed a drop, leaving unclear how long business and consumer patience will hold out for rapid improvements in the business environment resulting from potential tax reform, infrastructure build and deregulation. “The wild enthusiasm that was noted at the start of the year has faded as reality sets in,” said NACM Economist Chris Kuehl, Ph.D.
Expect the May CMI to show more movement in the unfavorable factors categories, as some companies’ struggles with slow payers and dollar collections in the manufacturing sector in particular are anticipated to be reflected in the data.
“The big growth opportunities have not materialized as yet, but there remains some hope they will,” Kuehl said. “The other measures of the economy have been showing some of this angst as well, as the Purchasing Managers’ Index has been down from previous heights and the latest durable goods numbers were a little off their recent peak.”
– Nicholas Stern, senior editor
For a complete breakdown of the manufacturing and service sector data and graphics, view the May 2017 report on Wednesday morning by clicking here. CMI archives may also be viewed on NACM’s website.