The latest Credit Manager’s Index (CMI), released today by the National Association of Credit Management (NACM), shows “some minor slippage in economic growth occurred in both the manufacturing and service sectors in July.”
But NACM says growth continues in the economy, “evidenced by readings persistently above 5 0. On a month-over-month basis, growth is still stronger than recorded during the fourth quarter of 2003 and into the first quarter of 2004. August will probably see some further erosion.”
NACM says its CMI, a monthly survey of the business economy from the standpoint of credit and collections, was launched in January 2003 to provide financial analysts with another strong economic indicator.
The 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.
To view the complete index online, go to http://www.nacm.org/resource/press_release/pressJuly04.html.
