Credit Managers’ Index Hits 2017 High Point
Thursday, September 28, 2017
Following a minor gain in August, The Credit Managers’ Index’s continued its rise this month. September data from the National Association of Credit Management (NACM) shows the overall index climbing to its high point for the year, 56.5.
“The hope is that this may be the start of a nice little trend for the end of the year,” said NACM Economist Chris Kuehl, Ph.D.
The index of favorable factors hit 63.5, its highest point since April, and the index of unfavorable rose from 50.3 to 51.8, another record level for the year.
The favorable factor subcategories are now all in their 60s. Sales jumped from 62.2 to 67.3. New credit applications declined slightly from 61.2 to 60.5. The dollar collections category eased up from 58.9 to 60. Amount of credit extended remained relatively stable, moving from 66.7 to 66.3.
In the unfavorable subcategories, all but one reading has escaped the contraction zone (below 50). Rejections of credit applications moved from 52.2 to 52.5. Accounts placed for collection escaped contraction for the first time this year, increasing from 48.7 to 50.3. The disputes reading also rose to its high point for the year, from 49.1 to 51.7. Dollar amount beyond terms continued to decline, moved from 47.4 to 50.4. The dollar amount of customer deductions increased from 49.2 to 49.8. The filings for bankruptcies category remains well in contraction territory, risking from 55.3 to 56.2.
“Once more, there may be some expectation of stability and a trend toward the positive,” Kuehl said. “The favorable factors are improving, but the unfavorable numbers are still lagging badly.”
View the complete report and analysis from NACM.
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