Issued September 5, 2006
The seasonally adjusted Combined Credit Manager’s Index (CMI) fell in August from 57.6 to 57.3. The index continued to indicate an economy with good momentum, but it also revealed some pockets of weakness. While the manufacturing, services and combined indexes were all above the 50 mark, indicating economic expansion, both the manufacturing and combined indexes fell from last month’s levels. All three of the indexes experienced sharp drops in the sales and amount of credit extended components. Drops in these top-line oriented measures bode poorly for continued growth, and confirm other softening macroeconomic indicators such as a weak job market, sluggish retail sales, an easing of inflation, and a housing market that until recently had been widely described as “cooling” and might now be better characterized as frigid.
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