For manufacturing alone, the CMI was 49.6. An index of 50 indicates expansion in the credit market, which translates into more credit availability, more sales that require the acquisition of credit and more prompt and regular payments on credit granted.
“While the CMI was primarily driven by some positive factors, the reduction of some negative factors had a greater influence on the manufacturing index,” says Dr. Chris Kuehl, economic analyst at NACM. “Given the horrific year that manufacturers have been through, it is more than encouraging to note that bankruptcies and delinquencies are ebbing and that credit is getting back in shape after the long period of decline.”
“There has been some movement in sales and some positive movement in terms of credit availability, but up to this point there hadn’t really been positive news regarding payment on that debt,” adds Kuehl. “Now, all three factors seem to be moving in a generally positive direction.”
