Two steps forward, one step back, provides a quick understanding of credit managers’ outlook on the economy.
The National Association of Credit Management survey of managers found August to be less rosy than July though the outlook remains optimistic about growth. An index tied to the surveys fell two points to 54.2 from 56.0. Any reading above 50 indicates economic expansion.
“That sick feeling that one gets on a roller coaster seems to be affecting those that have been following the gyrations of the CMI (credit managers index) this year,” economist Chris Kuehl wrote in the group’s report. “A good month seems to occur after a bad one and then there is a return to the negative side of the next one.”
Kuehl said the drop was most prominent among favorable factors, such as sales and new credit applications. Unfavorable factors, such as rejections of credit applications and accounts sent to collections, changed less dramatically.
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Volatility in other economic indicators, including the purchasing managers index due out Tuesday, add to the more widely noticed stock market volatility, Kuehl added.
To reach Mark Davis, call 816-234-4372. Follow him on Facebook and Twitter @mdkcstar