The latest Credit Managers’ Index (CMI), now available at NACM’s website (www.nacm.org), finds an manufacturing and service sector swoons in play yet again in 2012 despite what was seen as strong potential at the onset of the year.
The main sense provided by the new CMI statistics is that consumers are feeling tentative. This is compounded by what NACM Economist Chris Kuehl intimates are significant secondary scenarios contributing to the “spring swoon:” those being continued concern over the European financial crisis, high domestic unemployment and inflationary pressure. Granted, conditions have not deteriorated to a point that calls for panic on the part of businesses and credit professionals.
“The gains made in the last year have largely been erased, and now the question is whether there will be a swift and significant comeback,” said Chris Kuehl, PhD, economist for the National Association of Credit Management (NACM). “The [CMI’s] drop from April to May is not quite as steep as the one from March to April, but the decline is worrisome nonetheless.”
The CMI report for May 2012 is available online now and contains full commentary, complete with tables and graphs. CMI archives may also be viewed online.
-Brian Shappell, CBA, NACM staff writer