NACM Credit Index Falls to One-Year Low
The February report of the Credit Managers’ Index (CMI) from the National Association of Credit Management (NACM) significantly dropped this month, an unexpected decrease given where projections were a few months ago. The monthly economic indicator’s combined scored declined to 53.2 in February, down from 55.1 in January.
The survey measures activity in manufacturing and service sectors among business-to-business credit professionals. According to the survey, the index of favorable factors fell to 57.2 and sales dropped to 59. The new credit applications category also set a record, dropping from 58.3 to 54.4.
“That is a nasty drop and at no point in the last year has it been that low,” said Chris Kuehl, Kansas City-based NACM economist. “In December it stood at 54.9 and that was seen as bad enough. The reduction in the overall score was reflected in reductions across the board — favorable and unfavorable factors and in both the manufacturing and service sectors.”
To view the full NACM report, click here.