COLUMBIA, Md. — The combined Credit Managers’ Index (CMI) of the National Association of Credit Management for September rose to 49.8, bouncing back from a nearly stagnant August on the strength of some dramatic improvements in dollar collections and in reductions in accounts placed for collection and dollar amount beyond terms.
September saw the biggest improvement in these sectors in almost a year. Throughout the last year, the most distressing numbers seemed to be in these categories, which is expected in the middle of a recession. Even companies surviving the downturn were likely falling behind in bills or choosing to delay payments in an attempt to preserve cash flow. Now there is some sense that customers are starting to catch up and get current with their creditors.
The rate of dollar collections has not been this positive since Sept. 2008, just as the economy started to seriously bottom out. The number of accounts placed for collection has declined and is lower than any point since last summer. Dollar exposure is also the lowest since summer 2008. These index readings suggest that there is a marked improvement in credit performance.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info