CMI shows midsummer improvement

NACM’s seasonally adjusted combined Credit Managers’ Index (CMI) for August 2025 improved 0.7 points to 55.0. “Overall, the CMI shows improvement as we hit midsummer,” said NACM Economist Amy Crews Cutts, Ph.D., CBE. “The index has not moved much over the past year but has followed a gently sloped upward trend.”

The Index for Unfavorable Factors was unchanged, remaining at 50.9, marking its seventh month in expansion territory. Five of the six factors increased.

• Accounts Placed for Collection fell 2.2 points to 47.7, sliding further into contraction for a second month in a row.
• The number of accounts placed for collections at respondent firms has increased every month for nearly 3 years with the exception of June 2025.

The Index for Favorable Factors improved by 1.5 points, climbing further into expansion at 61.0 points.

• All four favorable factor indexes improved and are in expansion, with dollar sales leading the improvement, rising 2.4 points to 63.3.
• The weakest favorable factor index is the index for New Credit Applications, which climbed 0.6 points to 57.0.

What they’re saying:

• “Customers are dragging out payments, as their customers are delaying payments to them. It seems nobody looks at terms anymore.”
• “The tariffs on steel have allowed domestically sourced steel prices to rise faster than imported prices.”
• “We are seeing more ‘one-off customers.’”
• “There’s a rising number of customers switching suppliers to extend terms.”

Read the full CMI report here.