Economy Archive

On Tuesday, about 45,000 port workers went on strike after their contract expired, following unsuccessful last-minute negotiations between the International Longshoremen’s Association and the U.S. Maritime Alliance, which represents port operators and container carriers. The daily economic cost could be anywhere from $540 million to upwards of $4 billion.

Hurricane Helene, a Category 4 storm that tore through the Southeast of the United States last week, has left more than 160 people dead and is estimated to cost the country as much as $34 billion, according to Moody’s Analytics.

In the four years since Congress amended the bankruptcy code to assist small business reorganizations, credit managers still have mixed opinions on the success of these filings.  

NACM’s Credit Managers’ Index (CMI) has been hovering near non-recession lows for more than a year. In August, the CMI gained 1.2 points to 53.5 despite economic hardship.

NACM’s Credit Managers’ Index (CMI) deteriorated 1.6 points to 52.3 in July, suggesting growing economic risk. “The CMI is back to near non-recession lows,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

Though the U.S. economy has seemingly survived a worst-case scenario recession (for now), debt is rising as a rapid rate for consumers, businesses and the U.S. government.

Inflation levels remain above the Federal Reserve’s target rate of 2%. The latest figures show U.S. inflation sitting at 3.36%, but business and consumer sentiment would suggest that prices are much higher. After falling for much of last year, inflation accelerated again at the start of 2024, reducing the likelihood of early rate cuts. The Fed’s next interest-rate meeting is set for June 11, and the overwhelming consensus of economists is that there will be no rate cuts from the current level of 5.25% to 5.5%. Why it matters: Interest rates determine the cost of borrowing and the abil…

Credit holds temporarily suspend or reduce credit limits for customers who miss payments or exceed their credit limit. Why it matters: Although often used as a last resort, implementing credit holds is necessary as it aids in mitigating risk, ensuring financial stability and maintaining positive customer relationships.