Marchâ€™s economic report from the National Association of Credit Management dropped to the lowest itâ€™s been this year. The combined index fell from 53.2 in February to 51.2 this month.
Columbia, MD: March 31, 2015â€”The March report of the Credit Managersâ€™ Index (CMI) from the National Association of Credit Management (NACM) fell further this month indicating that some serious financial stress is manifesting in the data.
â€śWe now know that the readings of last month were not a fluke or some temporary aberration that could be marked off as something related to the weather,â€ť said NACM Economist Chris Kuehl. â€śThese readings are as low as they have been since the recession started and to see everything start to get back on track would take a substantial reversal at this stage.â€ť
The combined score of 51.2 is moving dangerously close to contraction zone. The index of favorable factors dropped to 55.4 while the unfavorable factors drastically fell to 48.5â€”a place this index has not seen since after the end of the recession. â€śThe signal this sends is that many companies are not nearly as healthy as it has been assumed and that there is considerably less resilience in the business sector than assumed,â€ť said Kuehl.