NACM’s Credit Managers’ 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.

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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.

Breaking away from the roller coaster ride seen over the last few months, the September report of the Credit 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.”

For a full breakdown of the manufacturing and service sector data and graphics, view the complete September 2015 report at http://web.nacm.org/CMI/PDF/CMIcurrent.pdf. CMI archives may also be viewed on NACM’s website at http://www.nacm.org/cmi/cmi-archive.html.

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.

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Jennifer Lehman
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