After accurately predicting economic weakness in the first quarter of 2014, the National Association of Credit Management's monthly economic report improved in May, suggesting further recovery and stronger GDP figures in the second quarter, barring any unforeseen shocks.
Columbia, Maryland: May 30, 2014â€”The Credit Managers' Index (CMI), issued by the National Association of Credit Management (NACM), improved from 56 to 56.8 in May. This marks the second consecutive month of improvement for the index, further signaling the end of the first quarter's economic turmoil that appears to have been primarily caused by bad weather. Elsewhere in the May CMI report, the favorable factors index rose from 60.7 to 62.7, buoyed by a strong increase in sales, and the unfavorable factors index remained unchanged at 52.8, held back by a perplexing increase in disputes.
Earlier in the 2014 the CMI predicted poor economic performance in the first quarter with a short series of declines that was eventually reflected in the US Commerce Department's recent revision of the US gross domestic product (GDP) figures, which indicated that the economy had endured negative growth at a rate of 1% for the first three months of the year. Recent CMI readings, however, have supported the hypothesis that analysts can expect the second quarter data to be much more positive.