Credit Confidence Drops Sharply to 6.93 from 7.15

Every quarter, CMA Members participate in the CMA Credit Confidence Survey. 202 members gave us a great insight into credit trends for Q4 2011 and the realities of Q3 2011.

Our overall Credit Confidence Score for Q4 2011 is 6.93 out of 10. Click here for Confidence trends. This is the sharpest decline reported in Credit Confidence since we started the survey back in Q2 2009.

CMA Credit Confidence Scores - Click to enlarge

One of the major factors in the drop in confidence is the slowing of payment in Q3 and the anticipation of continued slowing payments in Q4. Orders and applications were up in Q3 showing an increase in sales activity – while payments remained tight.

Survey Results - click to enlarge

Overall, the respondents reported no change to their credit policy in Q3/Q4. There was a slight increase in the amount of NSF checks and credit holds for Q3 2011.

Survey Results - click to enlarge

Breaking the scores down by Industry (manufacturing, wholesale trade and construction) shows the greatest confidence gain for Construction since Q2 2010. Those in construction also report an increase in applications and orders in Q3 – with a expectation of delayed payments in Q4.

Confidence by Industry - Click to enlarge

Thanks for your participation in the CMA Credit Confidence Survey. The Q3 2011 – Q4 2011 survey is now closed. Watch for the Q4 2011-Q1 2012 Survey at the end of December 2011.

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