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November CMI Slips to Lowest Reading in the Last Year

Updated: Dec 22, 2021

NACM’s Credit Managers’ Index (CMI) combined score for November fell 0.6 points to a reading of 57.4, its lowest in 2021. NACM Economist Chris Kuehl, Ph.D. said that the decline is no reason to be alarmed. “This month shows a slight reduction in activity that still remains robust,” Kuehl said. “The rebound of the global economy in 2021 was equally as unprecedented as the pandemic itself.”


The combined index of favorable factors saw a 1.3-point drop to 66.4 this month. Sales fell by 2.4 points to a reading of 70.3, and the dollar collections category saw a 3-point drop to 60.4. Amount of credit extended slipped by 0.4 points to a reading of 69.6.


The index of unfavorable factors dropped to its lowest reading after two-consecutive months, with a 0.2-point decrease (51.3). Rejections of credit applications improved by 1.1 points to 53.2. Disputes saw a 0.5-point improvement, but still remains in the contraction zone at 49.0. The dollar amount of customer deductions category experienced a 1-point drop (48.5), falling deeper into the contraction zone.


“As recently as September all the categories in the unfavorable index were in expansion territory, and now there are three that have fallen into contraction and that has not been the case in over a year,” Kuehl said.


For a complete breakdown of the manufacturing and service sector data and graphics, view the November 2021 report. CMI archives also may be viewed on NACM’s website.


This article first appeared in the December 2 NACM eNews. It is used with permission.

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