Magazine article Business Credit

NACM Credit Manager's Index

Magazine article Business Credit

NACM Credit Manager's Index

Article excerpt

Report For July 2005

The Credit Manager's Index (CMI) stood at 56.7 percent, firmly entrenched above the 50 percent level, which implies economic growth. Although the CMI did slip 1.1 percent from June, Dan North, Chief Economist with credit insurer Euler Hermes ACI, believes the decline was largely the result of two highly correlated components: the amount of credit extended, and sales, the component that shows the most monthly variation. "This data suggests that the decline was more related to volatile top-line growth as opposed to a more deeply rooted deterioration in credit conditions. While downward trends in many of the other components of the Index could represent headwinds arising from tightening monetary conditions, higher energy prices, and weakness in Europe, the overall Index continues to reflect reasonably strong economic growth," says North.

Manufacturing sector Results

The manufacturing sector continued its downward sLide, ending the month of July at 56.9 percent, down 40 points from just one month ago. Lower sales and amount of credit extended pushed favorable factors down 240 points, while lower amounts of customer deductions and accounts placed for collections helped boost the unfavorable factors up 90 points. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.