NACM's Credit Manager's Index for October, unveiled Monday, showed little in the way of building about gains reported in September's index...but, importantly, it also showed no signs of retreat.
There was a slight reduction in the index of favorable factors, but the index of unfavorable factors came just a little bit closer to expansion territory. Most economic indicators has been reasonably positive over the past few weeks and seem to be pointing to better months to come. The October CMI index does nothing to dispel this notion, although the slower pace of progress continues to forshadow tepid growth, recovery for any but a handful of sectors.
“The latest data on the expansion of the U.S. economy in the third quarter reinforces the notion that conditions have started to improve, and the retail data thus far has been more encouraging than not,” said Kuehl. “If one looks at the steady rebound in the financial stability of the business community over the last month, there is some reason to assume that conditions will improve even more in the last two months of the year.”
The manufacturing sector continues to gain momentum, with the favorable factor indext surging to levels not seen since May. Service sector performance, meanwhile, was weaker than many had expected given the decent retail performance noted in the last few months. The most startling decline was in sales, though there still was palpable improvement in unfavorable service sector factors, going forward.
For the full write-up and charts for October's Credit Managers' Index, visit http://web.nacm.org/CMI/PDF/CMIcurrent.pdf.
Brian Shappell, NACM staff writer