Tag: Credit Managers’ Index (CMI)

The U.S. economy surpassed expectations after real (inflation adjusted) gross domestic product (GDP) increased by 3% at a seasonally adjusted annualized rate for the second quarter of 2025, reversing a 0.5% decline in the previous quarter, according to the U.S. Bureau of Economic Analysis. Contributing to the rise in real GDP, consumer spending grew by 1.4%, up from 0.5% in the prior period.

Every month, credit managers from across the United States complete a survey reporting the conditions of their last monthly business cycle, looking at their sales, credit applications and the accounts placed for collections. The survey is compiled into the Credit Managers’ Index (CMI), a monthly forecast that shows how the current economy and business environment are impacting customer behavior and, consequently, the day-to-day work of credit managers.  

NACM’s seasonally adjusted combined Credit Managers’ Index (CMI) for April 2025 improved 0.7 points to 54.0. “The Credit Managers’ Index improvement currently reflects accelerated business activity ahead of new tariffs,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

Credit managers are facing new challenges, as economic uncertainty, material shortages and the ever-looming threat of tariffs have stifled customers’ buying power, making it more difficult to predict and mitigate risk. With unpredictability in the market, it can be difficult for credit managers to fully gauge the degree of risk incurred with each transaction. 

Economic turmoil is straining cash flow for many businesses, while market instability continues to rise. In this climate, economic forecasts that provide perspectives into the health of the B2B world are increasingly valuable, as credit professionals rely on this information to anticipate and mitigate potential risks.

NACM’s Credit Managers’ Index (CMI) improved 1.9 points to 54.9 in February. This comes after two months of declines.