NACM’s seasonally adjusted combined Credit Managers’ Index (CMI) improved 0.9 points to 55.2.
“The improvement in the CMI was largely driven by improvement in favorable factors,” said NACM Economist Amy Crews Cutts, Ph.D., CBE®. “Respondents continue to report more optimism recently than we saw in the fall.”
Unfavorable factors rose 0.7 points to 50.4 points. This index has not wavered much above or below the 50-point line denoting the break between contraction and expansion since the summer of 2021.
- The largest decline was in Rejections of Credit Applications, which lost 1.4 points, pushing it into contraction territory with a value of 49.3.
- Disputes fell 0.3 points to sit at 48.9, its fourth month in contraction.
Favorable factors improved 1.1 points, leaving it now at 62.2 points and in expansion.
- Dollar Sales factor, which gained 4.1 points, was the primary driver of the improvement.
What respondents are saying:
- “Oil prices are really helping our business. We also acquired the assets of a competitor, including inventory and customer lists, so we gained sales that way.”
- “New sales are down. Renewals are flat. Hardware continues to be produced at same cadence for warranty replacements.”
- “Overall, sales and orders in pipeline are up considerably. Collections in some segments remain a challenge.”
See the full CMI report here and add your voice to the conversation by participating in the May survey. Open from May 6-13.
