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NACM’s Credit Managers’ Index is Trending Upward

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 Showing a modest increase,  January's economic report from the National Association of Credit Management continues its roller coaster ride, dropping from 53.9 to 52.6.

Despite market volatility, economic indicators such as the January report of the National Association of Credit Management (NACM) can be added to the other lists of data sources such as housing, employment and manufacturing that have been pointing in a positive direction, according to NACM Economist Chris Kuehl, Ph.D.

A combined reading of 53.5 up from December’s 52.8, “puts the numbers back to what they were in October of last year … the trend is certainly in the right direction of late,” Kuehl explained.

The favorable categories gained just over 1.5 points, while the unfavorable categories remained even at 50.3. Kuehl noted that, “The data on the unfavorable categories are not as encouraging, but at least the big declines seem to have come to an end for now. Those under 50 are now at four and last month only three dipped into the contraction zone showing that there are still many companies in some economic distress.”

“In general, the CMI report [for manufacturing] is more upbeat than has been the case in the recent past,” said Kuehl. However, as regards a two-point drop in the rejections of credit applications, “There are companies that are in trouble right now and seek someone to throw them a lifeline by offering credit when that would likely be a bad idea. Many of the companies are not offering that credit rescue these days and thus reject a lot of the applications that are coming in.” Like manufacturing, the service sector had a modest upward trend with the favorable factors breaking the 60 barrier.

For a full breakdown of the manufacturing and service sector data and graphics, view the complete January 2016 report here. CMI archives may also be viewed on NACM’s website here.

ABOUT THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT

NACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACM’s collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nation’s policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. NACM's annual Credit Congress & Exposition conference is the largest gathering of credit professionals in the world.

 

Contact: This email address is being protected from spambots. You need JavaScript enabled to view it., 410-740-5560
Website: www.nacm.org

Source: National Association of Credit Management

NACM’s Credit Managers’ Index Shows Modest Improvement

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 After months of staying on a volatile roller coaster ride, December’s economic report from the National Association of Credit Management continues its roller coaster ride, dropping from 53.9 to 52.6.

Showing only minor improvement, the December report of the December report of the from the National Association of Credit Management (NACM) ended the year modestly at 52.8. Since November’s index, the combined score increased by 0.2 points, an upward easing that is essentially a “flat” reading, according to NACM Economist Chris Kuehl, Ph.D.

“The good news is that the numbers did not dip as some had expected,” Kuehl explained. “The other good news is that most of the stability was in the unfavorable categories and that is slightly more encouraging as far as the future is concerned.”

The four subcategories within the index of favorable factors all remained well above the 50.0 contraction zone, while the three of the six subcategories within the index of unfavorable factors remained below it. However, the overall score of the unfavorable index emerged from negative territory at 50.3. “Granted, this is a razor-thin margin and no reason for wild celebration, but the reading this month is still better than it has been since August,” Kuehl noted.

Unfortunately, the manufacturing sector did not reflect the same outlook, with the subcategories of sales and amount of credit extended dramatically declining. The index of unfavorable factors showed slight improvement, but still remained in the contraction zone. The service sector, however, improved with positive activity occurring in the retail and construction industries.

For a full breakdown of the manufacturing and service sector data and graphics, view the complete December 2015 report here. CMI archives may also be viewed on NACM’s website here.

ABOUT THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT

NACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACM’s collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nation’s policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. NACM's annual Credit Congress & Exposition conference is the largest gathering of credit professionals in the world.

 

Contact: This email address is being protected from spambots. You need JavaScript enabled to view it., 410-740-5560
Website: www.nacm.org

Source: National Association of Credit Management

NACM’s Credit Managers’ Index Returns to a Negative Trend

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November’s economic report from the National Association of Credit Management continues its roller coaster ride, dropping from 53.9 to 52.6.

Both the manufacturing and service sectors experienced a decline this month, according to the November report of the from the National Association of Credit Management (NACM). The combined CMI index dropped more than a point, from 53.9 in October to 52.6 in November.

“This month, the trend has returned to the stress of the last few, and the timing is not as it should be,” explained NACM Economist Chris Kuehl, Ph.D. “This is the time of year that the consumer comes to the rescue, but it doesn’t appear that will happen this time.”

The respective favorable and unfavorable index factors in NACM’s combined CMI both dropped from the previous month. Every subcategory within these indexes also declined, with four out of six unfavorable categories in contraction territory. “Given all the data that has been emerging as far as the economy’s overall strength, this is not a big surprise, but still a disappointment,” Kuehl noted. “It seems that companies are struggling at this point in the year and that is not a good sign given that this is the time when these companies are expected to make the bulk of their money for the year. This really applies mostly to retail, but the manufacturers respond to that retail drive.”

For a full breakdown of the manufacturing and service sector data and graphics, view the complete November 2015 report here. CMI archives may also be viewed on NACM’s website here.

ABOUT THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT

NACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACM’s collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nation’s policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. NACM's annual Credit Congress & Exposition conference is the largest gathering of credit professionals in the world.

 

Contact: This email address is being protected from spambots. You need JavaScript enabled to view it., 410-740-5560
Website: www.nacm.org

Source: National Association of Credit Management

NACM’s Credit Managers’ Index Reflects Improvement in Manufacturing and Service Sectors

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 October’s economic report from the National Association of Credit Management took a positive turn from last month’s reading of 52.9, increasing to 53.9.

Emerging from the downward trend of the last two months, the October report of the Credit Managers’ Index (CMI) from the National Association of Credit Management (NACM) showed improvement in the manufacturing and service sectors. Within a month, the combined index gained a full point, rising from 52.3 to 53.9. Still, only time will tell whether it is a glimmer of hope or simply a mirage, cautioned NACM Economist Chris Kuehl, Ph.D.  

"The readings this month have been a vast improvement over the readings of the previous two months, and that is certainly welcome news in a period when the bulk of the data has been trending in a negative direction," said Kuehl, noting the recent weakness in durable goods orders and new homes market, as well as the strength of the dollar and its impact on exports.

The index of favorable factors posted the most significant improvement, increasing from 57.7 in September to 59.4 in October. All four categories within this index rose from the previous month. The index of unfavorable factors also reflected similar improvements, rising from last month's 49.7 to 50.2; it showed increases in its six subcategories as the overall unfavorable group returned to expansion levels. The categories of disputes and dollar amount beyond terms, however, remain in contraction territory.

NACM's Credit Manager's Index Continues Decline in September

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September’s economic report from the National Association of Credit Management dropped even further from the previous month’s reading of 54.2 to 52.9.

Columbia, MD: September 30, 2015—Breaking away from the roller coaster ride seen over the last few months, the September report of theCredit Managers’ Index (CMI) from the National Association of Credit Management (NACM) continued to decline, resulting in the lowest combined index of the last year.

The index of unfavorable factors was mostly to blame for the overall drop with four of the six categories falling below the 50.0 contraction zone. “When the unfavorable factors are showing stress, it is an indication that companies are feeling the pinch and may be starting a long downward trend,” said NACM Economist Chris Kuehl, Ph.D.

The index of favorable factors did not do too well either with three of the four categories dropping from the previous month—although, all remained above contraction territory. The category of new credit applications showed the only increase, from 57.7 to 58.1, which Kuehl described as an “interesting sign,” while also acknowledging it is the third lowest reading within that category in the last 12 months. “Nearly all the readings are down from where they were a month ago and significantly down from a year ago,” Kuehl said. “There will have to be a big rebound just to get back to where the readings were in October and November of 2014.”

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