Every quarter, CMA Members participate in the CMA Credit Confidence Survey. 246 members gave us a great insight into credit trends for Q4 2010 and the realities of Q3.
Our overall Credit Confidence Score for Q4 2010 is 7.00 out of 10.
Another story is told when we break out the score by industry. The construction industry confidence in payment for Q4 is 6.29, while those in manufacturing rank a full point higher at 7.45.
In Q3 2010, CMA Members saw an increase credit applications, orders and payments received – all great economic signs. Still most members identified payments as slowing in Q3 and continuing that trend in Q4.
Most members predict no change in their Credit Policy for Q4. In past surveys tightening the Credit Policy had ranked high and chances are many members have already adjusted policy to meet this economic market.
Use of credit hold in Q3 increased noticeably. Since credit hold is used in times of slow payment, this corresponds to the trend in slowing payments.
The industries represented in our survey are abundant, making our overall Credit Confidence Score a great benchmark across industries. CMA members are slightly less confident than last quarter when our score was 7.10.
Thanks for your participation in the CMA Credit Confidence Survey. The Q3-Q4 2010 survey is now closed. Watch for the Q4-Q1 -2010-2011 Survey at the end of December 2010.