Economy Archive

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. 

Credit managers are no strangers to change, with economies always fluctuating and markets changing at the drop of a hat. When it comes to the value of the U.S. Dollar, fluctuation can be more complex and create complications in international trade, leaving credit managers at odds with their customers overseas. 

Tariffs have long been a tool of international trade policy, used by countries to influence economic relationships and protect domestic industries. However, they can also result in higher prices for consumers and provoke retaliation from other nations—actions that may weaken exports and slow economic growth. When countries impose tariffs or other trade barriers on one another, it can escalate into what is known as a trade war.