Credit Managers’ Index (CMI), eNews
January CMI: Sales recover after December decline
NACM’s Credit Managers’ Index (CMI) fell 1.1 points to 53.0 in January. Though the CMI has fallen for the last two months, it remains on the side of expansion.
“The weaker reading is driven by declines in the amount of credit extended and a rise in the dollar amount going beyond terms,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.
Unfavorable factors fell into contraction territory, dropping 1.3 points from last month, now sitting at 49.8. Accounts placed for collection is at 47.8 this month, its 29th month in contraction. This means the number of accounts placed for collections has increased every month for more than two years.
The favorable factors index remains solidly in expansion at 57.9, even after declining 0.8 points in this month’s survey. Sales recovered after suffering its largest record decline outside of COVID in the December 2024 survey. It sits at 56.1, gaining 2.5 points.
What CMI respondents are saying:
- “We are seeing signs of financial stress among our customers and business activity is slowing outside of the normal seasonal patterns.”
- “It’s great that sales are still robust, but inflation is responsible for part of those gains rather than being an indication of more contracts and expanding units sold.”
- “The Trump Administration appears to be using tariffs as a negotiating tool, which could be good for achieving certain policy goals, but makes it hard for a business owner or leader to know what will happen in a week or a month and what the optimal decisions should be for their business.”
The February CMI Survey opened on Monday, Feb. 3 and will close Tuesday, Feb. 11. Sign up now to participate. You can view the full January CMI report here.
