Magazine article Business Credit

February's CMI Carries Forth a Potentially Positive Trend

Magazine article Business Credit

February's CMI Carries Forth a Potentially Positive Trend

Article excerpt

NACM's Credit Managers' Index (CMI) showed impressive gains in February after what NACM Economist Chris Kuehl, Ph.D., described as a "solid performance" for the second consecutive month, following a rebound in January. Although it's still too early to constitute a positive trend, Kuehl said the latest results are "gratifying" and highlighted ongoing redemptions in sales, new credit applications and the amount of credit extended to customers.

The CMI's combined score reached 56.5 in February, the same reading that was last seen in September 2017 and the second- highest reading since last February--the highest reading was recorded at 56.6 in November. Similar to January's CMI results, Kuehl said favorable factors saw the most movement, with slight changes in unfavorable factors.

'This was a good month and it came on top of a good month," Kuehl said. "Is that enough to qualify as a trend? Probably not yet, but one has to start somewhere. If there are decent readings in the next month or two, we will have an actual recovery to talk about."

A notable theme in February's CMI readings is that the results are similar to those seen toward the end of 2017. A substantial jump was seen not only in sales and new credit applications, but also in dollar collections and amount of credit extended. …

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