Economy Archive

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.

Bankruptcy tends to stay out of the public’s focus–and by extension Congress’s–when the economy is doing well. That’s where we are now, with unemployment rates still sitting around 4% and inflation rates mostly under control. Because of that, Congress finally allowed the COVID-era small business chapter 11 bankruptcy eligibility threshold increases to expire. There has not been a major piece of legislation introduced since January that touches Chapter 11 or 13 bankruptcies.

Under any circumstance, it is difficult to predict where the economy will be in the coming weeks, months or years. With ongoing trade wars between the United States and major trade allies and fluctuating tariffs that are subject to change at a moment’s notice, it can be even harder. 

A recent contraction in the United States’ gross domestic product (GDP) is raising concerns for economists and credit managers as an early sign of recession. Meanwhile, inflationary pressures continue to weaken consumer sentiment, further contributing to a decline in market wealth.