Report for December 2009

Business Credit, March 2010 | Go to article overview

Report for December 2009


The reports on the economy have been mildly encouraging at year's end and now everyone's attention is turned to 2010--the year that is supposed to provide the anticipated recovery. The December CMI matched the mood of the economy as a whole--essentially flat, but showing some mild progress. The most important aspect of the report is that the index remained above the 50 mark that separates growth from contraction and even showed a slight gain as it moved from 52.3 to 52.9. "This is hardly the kind of advance that provokes celebration, but given the gloomy assessments made about the 2009 holiday season, the gain is certainly preferable to what had been anticipated," said Chris Kuehl, Ph.D., NACM economist.

The overall conclusion from this month's data is that the economy remains weak, but headed in the right direction. The slow thaw in the credit markets is still taking place and there are signs of expansion in both the manufacturing and service sectors. …

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