February's economic report from the National Association of Credit Management dropped to the lowest it's been this year. The combined index fell from 55.1 in January to 53.2 this month.
Columbia, MD: February 27, 2015â€“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.
"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 boardâ€”favorable and unfavorable factors and in both the manufacturing and service sectors."
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.â€”both categories falling from the 60 range since March 2014. The new credit applications category also set a record, dropping from 58.3 to 54.4.