May‚Äôs economic report from the National Association of Credit Management shows slight growth, with the combined index increasing from 53.9 last month to 54.1.
The May report of the Credit Managers‚Äô Index (CMI) from the National Association of Credit Management (NACM) reflected a small increase this month. May‚Äôs combined index is back to 54.1, the same reading as recorded in February. While the reading is certainly respectable, most of last year saw a higher combined score‚ÄĒin the 56 range.
‚ÄúThe word of the day seems to be ‚Äėincremental,‚Äô‚ÄĚ said NACM Economist Chris Kuehl, Ph.D. ‚ÄúThere are still signs of growth and some stability. The problem is that there was an expectation of more by this time.‚ÄĚ
The CMI index of favorable factors declined from 59.8 in April to 58.8 this month, and the index of unfavorable factors are at 50.9‚ÄĒ just above the contraction zone. The good news, however, is the overall index is not as low as the 53.4 reading posted in March. The biggest drop this month in the combined sectors came in the sales category, slipping from 59.1 to 57.1‚ÄĒthe lowest it has been in the last two years. ‚ÄúThis suggests that there remains a lot of caution among consumers and business buyers alike‚ÄĒsomething that has been reinforced by the durable goods data of late,‚ÄĚ said Kuehl.