NACM Credit Manager's Index (CMI) for July, 2003: Results Indicate A Slowdown of Growth In The Economy

The NACM Credit Manager's Index (CMI), while showing growth in the economy, has fallen for the third consecutive month. It has lost 190 basis points since April's reading of 57.3%, indicating slower growth on a month-over-month basis. The manufacturing sector is the reason for the slowing. The manufacturing index has declined 390 basis points since its April high of 58.0%. Growth in the service sector this month was unchanged from June. This performance is positive in the sense that the index didn't decline as it did in June. The service index of 56.9% is the second highest reading in the past 12 months for this sector, indicating that growth is still quite strong. 

The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle. Favorable factors include sales, new credit applications, dollar collections and amount of credit extended. Unfavorable factors include rejections of credit applications, accounts placed for collections, dollar amounts of receivables beyond terms and filings for bankruptcies.

For a complete index including results from the manufacturing and service sectors, along with the methodology, click here:

http://www.nacm.org/resource/press_release/pressJuly03.html