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Economic recovery stumbles, April CMI drops

NACM’s April Credit Managers’ Index (CMI) fell back to where it started in 2024 with a 3.1-point drop. Why it matters: Now sitting at 51.8, the Survey erased the major gains made in February and March.
 |  Annacaroline Caruso, CICP, editor in chief  |  ,

NACM’s April Credit Managers’ Index (CMI) fell back to where it started in 2024 with a 3.1-point drop.

Why it matters: Now sitting at 51.8, the Survey erased the major gains made in February and March.

  • “After two months of improvement, the CMI has fallen back to near where it started the year, in expansion but weakly so,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

The index for favorable factors deteriorated by 4.5 points but remains solidly in expansion at 57.7.

Three things you need to know:

  1. Every favorable factor worsened in April.
  2. Dollar collections led the decline with a 6.3-point drop to 54.9.
  3. Sales fell 4.5 points to 57.6.

The index for unfavorable factors dropped 2.2 points and landed back in contraction territory at 47.8.

Three things you need to know:

  1. This index has been in contraction for 10 of the last 12 months.
  2. Dollar amount beyond terms plummeted 10.2 points to 43.9.
  3. Accounts placed for collection remains in contraction territory for its 23rd consecutive month.

💭 Amy’s thought bubble: “It looks like the Fed is unlikely to cut the target interest rate until much later in the year, if at all,” she said. “We will be in a phase of monetary tightening for a considerable amount of time.”

What CMI respondents are saying:

  • “We are seeing a slowing of restock orders and payments.”
  • “Retail sales are at a slow start.”
  • “A specific part of our business is doing very well, which is why our sales are up. So far, these customers are paying well.”
  • “Sales volume is very inconsistent bouncing up and down. Service and manufacturing for a sister company has slowed considerably. It’s difficult to get a handle on the market right now.”
  • “The number of NSFs are higher.”
  • “Collections are getting harder. Our customers are having a harder time getting paid from their own customers.”

Sign up to receive monthly CMI survey participation alerts. For a complete breakdown of manufacturing and service sector data and graphics, view the April 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.