Tag: Economy

After a brief respite of bipartisanship in January, the border security and foreign aid package is officially dead in the water, and the Senate’s busy legislative calendar has effectively stalled the bipartisan tax package that the House passed last week. In other words, everything is back to normal in D.C. On Wednesday, Jan. 31, the House passed, by a strong margin of 357-70, a bipartisan tax package that extended the increased child tax credit for another two years as well as several business tax provisions that were part of the Trump tax cuts in 2017. Most notably:

Declining 1.4 points to 51.1, NACM’s January Credit Managers’ Index continues to point to weakness in the business economy. The fluctuation in the CMI suggests that the business economy is experiencing instability rather than a clear downward trend. “The CMI continues to show considerable weakness but without a deliberate trend other than bouncing around just above the contraction threshold,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

In response to global conflicts, the U.S. and its allies have increased economic sanctions and enforcement measures against various countries. Businesses can minimize their exposure to these changes by regularly monitoring sanction updates, understanding applicable laws, integrating sanctions compliance into regulatory processes and strengthening Know-Your-Customer (KYC) policies. Why it matters: The noticeable surge in, attention to and enforcement of international trade requirements and regulations underscore the need for credit managers to stay vigilant and be aware of potential …

Total bankruptcy filings increased 18% year-over-year in 2023—likely due to high interest rates, maturing business loans and inflation. Chapter 11 bankruptcies increased 72% year-over-year and Subchapter V filings rose 45%, according to a report from Epiq. “While representing a substantial year-over-year increase, total bankruptcy filings remain lower than the pre-pandemic total of 757,816 recorded in CY2019,” the report reads.

It looks like Congress made a New Year’s Resolution of its own: getting its homework done on time! Congress appears to have reached a tentative deal to keep the government open and fund it through Sept. 30. This is in stark contrast to the last two times (October and November of last year) in which a last-minute extension was passed with little notice and less than a day to spare. So, the question is: what changed?

Housing starts rose to a 1-½-year high at 14.8% in November. According to a mid-December report from the U.S. Department of Commerce, permits for future construction of single-family housing in November increased to the highest level since May 2022.

The NACM Credit Managers’ Index (CMI) ended 2023 just 0.7 above where it started the year. In December, the Index gained 0.3 to a reading of 52.6. The CMI continues to show considerable weakness but remains above the contraction threshold. “It points to considerable decline in credit conditions that are leading indicators of economic activity,” said NACM Economist Amy Crews Cutts, Ph.D., CBE. “The Fed’s aggressive stance to fight inflation has hit businesses through increased borrowing costs. The CMI is showing these stresses with higher delinquencies on accounts receivables and increa…

The global economy faced severe headwinds in 2023 that tested its resilience—a banking crisis, tight monetary policy and some of the worst geopolitical tension seen in years. Many countries demonstrated strength while navigating these challenges and performed much better than expected, but others succumbed to economic instability. A recent eNews poll revealed more than two-thirds of credit professionals believe a recession is around the corner if we are not in one already, while 31% see the chance of a soft landing.