Economy Archive

Since the end of World War II, the United States’ dollar (USD) has been recognized as the world’s primary reserve currency and the most widely used medium of exchange in global transactions. Despite its long-standing dominance, the dollar remains susceptible to periods of devaluation.  Why it matters: Currency fluctuations increase risk in international trade credit. Credit professionals who understand both the advantages and challenges of a changing dollar are better equipped to reduce exposure and secure payment in cross-border transactions.  Over the past few years, the d…

NACM’s seasonally adjusted combined Credit Managers’ Index (CMI) for October 2025 improved 2.1 points to 54.5. “The index recovered most of last month’s drop and remains in expansion, but the statements made by respondents are worrying,” said NACM Economist Amy Crews Cutts, Ph.D., CBE. “The respondent comments are starkly negative, citing increased business failures and bankruptcies, lien filings and demands for extended terms.” The Index for Unfavorable Factors improved 1.6 points, sitting at 50.4 points after being in contraction last month. Disputes slipped 0.3 points to 48.8…

Metrics are a key part of how credit managers track their company’s performance, from how many customers are paying late to the number of new credit applications. There is a lot of internal data to consider when working in credit, but how often do credit professionals look outside their own metrics?  Why it matters: When credit managers focus only on their own performance metrics, they risk missing larger trends in the economy until those trends start to impact their company. By reading economic forecasts, metrics surveys and the news, credit managers can maintain a strong awar…

With economic uncertainty mounting across the board, the agricultural industry continues to slump. With input costs rising and profits dropping, trade tensions add increased instability as they stifle previously high agricultural exports.   Why it matters: In the September Credit Managers’ Index (CMI) report, respondents noted that the agricultural industry is continuing to see stress with no relief in sight. The imbalance created by higher input costs and lower commodity prices is sinking the agricultural economy deeper, compounded with the unpredictability of international trade t…

The U.S. economy surpassed expectations after real (inflation adjusted) gross domestic product (GDP) increased by 3% at a seasonally adjusted annualized rate for the second quarter of 2025, reversing a 0.5% decline in the previous quarter, according to the U.S. Bureau of Economic Analysis. Contributing to the rise in real GDP, consumer spending grew by 1.4%, up from 0.5% in the prior period. Why it matters: Although the headline GDP growth rate and consumer spending data—what economists call hard data—support a promising outlook for the economy, some economists anticipate a downturn due …

Imagine you’re shipping a container of goods halfway across the world. You’ve done your part—packed, labeled and handed it off, but somewhere between the dock and the buyer’s door, something goes wrong. Who’s responsible? Who pays? And how do you make sure you still get paid? 

NACM’s seasonally adjusted combined Credit Managers’ Index (CMI) for June 2025 deteriorated 0.6 points to 54.1. “The CMI continues to show resilience in the face of great economic uncertainty in the U.S., and globally,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

It’s okay to ask for help sometimes—like when you’re short on lunch money and a friend covers you. Eventually, though, they’ll expect to be paid back. Business credit works the same way: it’s a relationship built on give and take.