The National Association of Credit Managementâ€™s (NACM) CMI for January 2013 signals a transitioning economy.
Columbia, Maryland: January 31, 2013â€”On the surface there appears to be little change this month. The shift in the Credit Managersâ€™ Index (CMI) was very minor, falling from 54.9 to 54.6. On closer examination there was a lot going on, reflecting that the economy is essentially in a transition mode again. The last time this kind of variety appeared in the National Association of Credit Managementâ€™s (NACMâ€™s) index of ten factors was during the months that preceded the slide into recession in 2008. For every sign that things were deteriorating, there was a part of the index that looked solid and unaffected by the impending crisis. Now that transition is showing again, but this time it seems to be pointing in the other direction. For every factor that suggests the economy is still in the doldrums, there is one or two that point to better days ahead.
To begin with, sales improved to 58.6, which may be the most positive sign of all. For eight of the prior 12 months, the sales number had been over 60. That started to reverse in September 2012 when it fell to 59.5, with the worst occurring in December when sales fell to 56.7, a level not seen in over a year. Now it has rebounded and, while not in the 60s yet, itâ€™s headed in the right direction.