Dollar Amount Beyond Terms and Accounts Placed for Collection Slide Well into Contraction Territory, but Sales Remain Stable and Dollars Collected Actually Improve
Columbia, Maryland: September 1, 2011-The Credit Managers' Index (CMI) for August hasn't been this low in more than a year-falling from July's 53.9 to 52.7-and is now tracking at levels last seen in 2008-2009. "The news this month is not good and comes as no shock to anyone who has been tracking the data coming from all directions," said Chris Kuehl, PhD, economist for the National Association of Credit Management (NACM). If there is any good news, it is that the combined number has not yet fallen below 50, the threshold separating contraction from expansion. But the index of unfavorable factors fell to contractionary levels. The last time the unfavorable index was this low was in the 2009 period when the recession had just started to show signs of easing. The fact that the data was not worse this month than it was is probably worth noting as most of the other indices released in the last few weeks suggested there might have been an even steeper decline.