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Credit Survey Shows Rebound
The October report came in at 57.9, the highest level recorded since May 2002.
The CMI is a monthly survey of the business economy from the standpoint of credit and collections.
The strong October performance was primarily driven by the manufacturing sector, which reached its highest reading in its history, dating to February 2002.
The service sector also participated in the October gains. The service index reading of 56.3 was the first positive number since May. NACM said it hopes the service performance indicates continuing improvement in this sector for the fourth quarter of this year. Overall, the economy continues to strengthen.
The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle. Favorable factors include sales, new credit applications, dollar collections and amount of credit extended. Unfavorable factors include rejections of credit applications, accounts placed for collections, dollar amounts of receivables beyond terms and filings for bankruptcies.
A complete index, including results from the manufacturing and service sectors, along with the methodology can be viewed online by going to http://www.nacm.org/resource/press_release/pressOct03.html