Corporate credit managers continue to give a thumbs up to the economy, according to a survey in May.
An index based on the survey results from the National Association of Credit Management dipped to 53.8 from 54.6 in April. Any reading above 50 indicates an expanding economy.
The report typically precedes the monthly purchasing managers index from the Institute for Supply Management.
Economist Chris Kuehl said the reading remained healthy with notably strong amount of credit requested.
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“Those seeking credit are seeking quite a bit of it,” Kuehl said in the report. “That suggests the larger companies are the ones looking for more credit.”
Surveys look at factors favorable to growth, such as credit applications and amount of credit extended, as well as unfavorable factors, such as bankruptcies and credit accounts placed for collection, to gauge the economic outlook. The overall index is generated from these sub-categories.
“The good news is that almost all of the numbers are in the expansion category, with most of the favorable factors firmly so,” Kuehl said.