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CMI hits 9-month high in March

NACM’s March Credit Managers’ Index (CMI) improved to its highest reading since 2023 with a jump of 2.5 points.

Why it matters: Now sitting at 54.9, the Survey indicates some relief for the business economy. “The CMI seems to be picking up some steam, with a second month of improvement and a breakout of the tight band in which it had been for eight months,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

 |  Annacaroline Caruso, CICP, editor in chief  |  , ,

NACM’s March Credit Managers’ Index (CMI) improved to its highest reading since 2023 with a jump of 2.5 points.

Why it matters: Now sitting at 54.9, the Survey indicates some relief for the business economy. “The CMI seems to be picking up some steam, with a second month of improvement and a breakout of the tight band in which it had been for eight months,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

The index for favorable factors gained 4.1 points to 62.2.

  • Amount of credit extended led the improvement with an 8.1-point jump to 64.2.
  • Sales advanced by 4.5 points to 62.1.

The index for unfavorable factors ended its 8-month contraction streak with a 1.4-point jump.

  • The biggest gains were in the indexes for rejection of credit applications (up 3.6 points to 51.5) and the index for dollar amount beyond terms (up 3.5 points to 54.1).
  • Accounts placed for collection improved by 2.8 points to 45.7 but marked its 22nd month in contraction.

“We are certainly far from a strong business economy, given the continued problem of more accounts being placed into collections each month,” Cutts said. “But seeing improvement in the dollar amount beyond terms index is a huge step forward … I sense some optimism among CMI Survey respondents that has been missing for quite a while.”

What CMI respondents are saying:

  • “Our business is coming out of the slow season and is starting to see an uptick in sales.”
  • “We are experiencing mixed performance in our portfolio. As we approach spring, we see signs of stronger performance for segments including some casual dining operators, lodging and cruise. Yet some restaurant chains are really struggling due to rising costs of operations, including wages and product costs, combined with customers looking for value. We are seeing more bankruptcies and defaults in the casual dining segment.”
  • “Though generally sporadic, sales activity seems to be picking up overall. Even though overall dollars beyond terms have declined (we collected on a very large account), the number of accounts slowing in payments or not paying has increased.”

Sign up to receive monthly CMI survey participation alerts. For a complete breakdown of manufacturing and service sector data and graphics, view the March 2024 report. CMI archives also may be viewed on NACM’s website.

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Annacaroline Caruso, CICP, editor in chief

Annacaroline graduated from Boston University in 2019 with a degree in Journalism. Her career has taken her from Dublin, Ireland to South Bend, Indiana before returning home to Baltimore, Maryland. She joined the NACM family in 2021 and helped launch the Extra Credit podcast. Annacaroline is passionate about creating content for B2B credit managers and using her storytelling skills to raise awareness about the profession. She invites story ideas at annacarolinec@nacm.org.

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