News: NACM News

Credit Managers’ Index Stabilizes

Thursday, August 31, 2017  
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The Credit Managers’ Index’s recent up-and-down trend is taking at least a temporary pause this month. August data from the National Association of Credit Management (NACM) shows the overall index holding nearly steady at 55.1, up just slightly from 54.6 last month. 

 

“What is interesting is that there has been some discernible improvement in the overall economy, but not enough to push activity for the credit managers,” said NACM Economist Chris Kuehl, Ph.D. “A steady state is good news as long as it has steadied at a relatively high rate, and that seems to be the case this month.” 

 

The index of favorable factors increased slightly from 61.7 to 62.2, and the index of unfavorable factors also increased slightly from 50 to 50.3. 

 

The subcategories saw greater volatility all saw gains. Sales slipped from 62.8 to 62.2. New credit applications jumped from 59.7 to 61.2. The dollar collections category declined slightly from 60.2 to 58.9. Amount of credit extended improved from 64.1 to 66.7. 

 

Volatility in the unfavorable subcategories continues. Rejections of credit applications rebounded from 51.9 to 52.2. Accounts placed for collection remained in contraction, dropping from 48.9 to 48.7. The disputes reading, which has been ping-ponging in recent months remains in contraction but improves slightly from 48.8 to 49.1. Dollar amount beyond terms continued to decline, moving from 48.3 to 47.4. The dollar amount of customer deductions increased from 48.1 to 49.2. The filings for bankruptcies category remains well in contraction territory at 55.3, up from 54.1 last month. 

 

“Have we finally seen some stability in all this?” Kuehl questioned. “If so, the timing couldn’t be better as we are fast approaching the most critical point in the year for consumers. It would be nice to carry some momentum into the holiday period.”  

 

View the complete report and analysis from NACM.

 

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