Credit managers reported a brighter economic outlook in a May survey.
An index generated from the survey by the National Association of Credit Managers climbed to 56.8 from 56.0 in April. The survey looks at sales, new credit applications, credit rejections, accounts placed for collection and other factors that provide an overall view of corporate credit conditions.
“The news is good in the right places, and there are fewer warning signs or cautionary notes this month,” Chris Kuehl, a Kansas City area economist for the association, said in the report. “If that trend can be sustained for a few more months, one can talk of real recovery.”
He added that the trend has been difficult to sustain, as one good month often has been followed by a weaker one.
Kuehl said the index’s recent climb matches the tone of other economic reports.
The credit managers index dipped to a low in February, the middle of the first quarter, during which the nation’s gross domestic product fell.
Credit managers’ responses since have lifted the index to its third highest level in the last 12 months, Kuehl said, suggesting there is reason to believe that the economy has improved as well.
An index above 50 shows expansion in economic activity. A reading below 50 shows contraction.
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