Credit managers’ outlook bodes well for economy

Credit managers at businesses reported a brighter outlook in October after signs had darkened during August and September.

An economic index based on surveys of companies’ credit managers climbed to 53.9 this month from 52.9 in September. Any reading above 50 indicates economic expansion, similar to the widely followed purchasing managers survey index expected Monday.

“The (credit survey) readings this month have been a vast improvement over the readings of the previous two months, and that is certainly welcome news in a period when the bulk of the data has been trending in a negative direction,” said economist Chris Kuehl, who prepared the report for the National Association of Credit Management.

The index’s uptick reflected an increase in credit applications, approvals and other trends identified in the survey.

Service, retail and holiday season trends take the economic lead over manufacturing, Kuehl said. That means these are the areas to watch for evidence that the economy’s recent slowdown will turn to faster growth.

This story was originally published October 30, 2015 at 9:37 AM with the headline "Credit managers’ outlook bodes well for economy."