NACM Credit Managers Index July 2007

Cmi


The seasonally adjusted Credit Manager’s Index (CMI) fell 1.2% in
July, the first decline in four months. While the drop-off was not dramatic, it
was widespread as eight of the 10 components fell. “The housing market was once
again a major drag on the respondents’ businesses,” said Dan North, chief
economist with credit insurer Euler Hermes ACI, “and there appears to be little
relief in sight as homebuilders continue to report bleak conditions.” North said
that housing starts, permits and unit sales are all down dramatically from last
year while the supply of unsold homes is growing. “And large homebuilding firms
are reporting losses and forecasting continued weakness,” he noted, “However,
commercial construction activity remains strong.” Even though the report shows
signs of erosion this month, North noted that 29 of the 30 total components are
still above the 50 level, indicating economic expansion.

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