Strategic Global Intelligence Brief for June 13, 2018

Short Items of Interest—U.S. Economy Producer Prices on the Rise Yesterday, the news from the consumer side of things indicated that there was reason for concern about the rise of inflation. Now, there is support for that notion from the producer price index as well. The rise was by 0.5% over levels seen in May, above the estimate of a 0.3% hike. O...
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Strategic Global Intelligence Brief for June 4, 2018

Short Items of Interest—U.S. Economy Global Indices Fading At the start of the year, the most common question asked of any economist was "what will the year be like?" The general consensus was that everybody needed to enjoy the first six months of the year since the last six months may not be so great. This is starting to pan out—at least according...
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Dated Payroll Tech Hinders Key Performance Indicators

Tracking key performance indicators (KPI) can give credit managers an idea of how business is doing and provide guidelines for improvement. However, analyses are only as good as the tools used to complete them, and according to a new joint survey, using dated technology will hinder performance. Nearly 1,000 professionals across several industries p...
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US Small Businesses Expect Revenue Growth, More Hiring in 2018

Access to financing hasn't been a problem for small businesses in the U.S., according to a Federal Reserve annual survey, which found 72% of respondents expecting revenue growth this year. Results of the online questionnaire were released on May 22 with responses from nearly 8,200 companies during the latter half of 2017. On Tuesday, Reuters report...
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US Rate Hikes Could Impact Asia-Pacific Banks

U.S. economists tend to keep their ears to the ground when the Fed hints at foreseeable rate hikes, but the country's latest monetary tightening outlook is also catching the attention of Asia-Pacific banks that could face repercussions in foreign funding. On May 17, Fitch Ratings stated it anticipates the Fed fund rate to reach 3.25% by the end of ...
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Agile Businesses See Benefits From Tech Adoption

Keeping up with today's technological advancements isn't an easy feat, especially in the workplace where new tech requires a new routine. As small businesses learn to adapt, a new study found that outside pressure to become technologically savvy may do more harm than good. In a collaborative global study, growth partnership company Frost & Sull...
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Mexican Corporates Credit Implications Depend on NAFTA Outcome

Amid the ongoing North American Free Trade Agreement (NAFTA) negotiations, Mexican corporates are finding ways to adapt to the current economic climate. So far, credit impacts are minimal but could take a negative turn if NAFTA talks end with its discontinuation. According to a Fitch Ratings report on May 16, corporates have spent the past decade d...
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Oil Prices Grow Amid US’s Iran Nuclear Agreement Pullout

Oil prices reached a three-and-a-half-year high on May 17, fueling concerns of a narrowing supply that followed U.S. President Donald Trump's decision to withdraw from the Iran nuclear agreement last week. In comparing the latest CNBC report with a Reuters report in March, oil prices rose about $10 a barrel in less than two months to $80, with anot...
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Small Business Profits Hit 45-Year High

Profit growth among U.S. small businesses struck a 45-year high in April, as the latest National Federation of Independent Businesses (NFIB) Economic Trends Survey showed a drop in poor sales and bump in its Small Business Optimism Index. The index increased only slightly by 0.1 points over March to a score of 104.8. From a credit perspective, the ...
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Trade Tariffs Halt U.S. Small Manufacturers’ Hiring, Investments

The ripple effect of the U.S. administration's trade tariffs has struck the country's small manufacturers, Reuters reports, as they scale back hiring and investments due to rising import costs. Following President Donald Trump's implementation of steel and aluminum import taxes in March, Reuters began interviews with several small- to mid-sized man...
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Global Average DSO Hits 66 Days, Expected to Increase in 2018

Trustworthy relationships between companies and customers have boosted the global average Days Sales Outstanding (DSO) to a 10-year high, which credit insurer Euler Hermes recorded at 66 days in 2017. According to its May 5 report, Euler Hermes predicts the global average to reach 67 days by the end of this year. The annual review and forecast was ...
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Strategic Global Intelligence Brief for May 2, 2018

Short Items of Interest—U.S. Economy Wage Hikes Finally Showing Up It has taken an inordinately long time, but there is evidence at last that wages are going up at a pace commensurate with the growth of the overall economy—this could be worrisome. For the last few years, the pace of wage growth has been weak—no more than around 2.3% on an annual ba...
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Second of Four Predicted Rate Hikes Expected in June

With rising inflation underway, investors are anticipating yet another interest rate hike from the U.S. Federal Reserve in June—the second of as many as four increases that are predicted in 2018. The Fed's first lending rate increase came in March when it grew by a quarter percentage point from 1.5% to 1.75%, Reuters reported. Borrowing costs began...
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Tech Use Huge Factor in Banking Competition

The ability to keep up with the times may literally break the bank if financial institutions choose not to embrace the technological advancements in the sector, particularly as it relates to payments and lending. According to Moody's Investors Service, banks that are willing to tap into this digital innovation will establish and potentially maintai...
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ACH Continued Growth in 2017

The ACH Network continued to grow in 2017, posting more than a billion new payments for the third consecutive year. The Network processed 21.5 billion transactions valued at nearly $47 trillion last year, according to a recent release from NACHA—The Electronic Payments Association.  Transaction value grew by almost 6%, while its value increase...
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Strategic Global Intelligence Brief for April 19, 2018

Short Items of Interest—U.S. Economy Jobless Claims Continue to Drop It takes two developments to get unemployment rates as low as they have been for the last couple of years. The first is that there has to be hiring, which has been the case since 2016. However, just as important and perhaps more significant to those who are employed is that people...
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Canadian SMBs’ Lending Struggles Continue

Canadian investment in its small- to medium-sized businesses (SMBs) saw an uptick in February over the prior month, but the latest readings of small business credit data and analysis provider PayNet's lending index indicate an ongoing struggle and undefined future. PayNet released its February Canadian Small Business Lending Index results on April ...
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Contractors of DOT Projects Confront Credit Complications

Contractors on large Department of Transportation (DOT) projects could face credit complications in the foreseeable future in connection to minimal state revenue growth and federal funding, Fitch Ratings reported on April 13. State-level funding was often provided for such projects but has declined over the past few years, leaving contractors to se...
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Strategic Global Intelligence Brief for April 13, 2018

Short Items of Interest—U.S. Economy Prepared for the Next One? Sooner or later, there is another downturn—that much is certain. Granted, economists have predicted 17 of the last three recessions, but what goes up must at some point go down. The Fed is deeply concerned that current fiscal policy is going to make responding very hard. The mounting d...
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India’s Economic Growth Increases Likelihood of ABS Loan Repayment

Credit managers conducting business in India have no need to worry when it comes to asset-backed securities (ABS), as Moody's Investors Services reports a "pick-up" in the country's economic growth, increasing the likelihood of loan repayment. India's economy grew 6.2% in 2017, with expectations even higher at 7.6% this year. As borrowers rake in a...
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