The National Association of Credit Managers is out with a report showing a sharp rise in credit suggesting a robust future for the economy after its economic report went to a 10-month high. The report is showing positive momentum in sales and in dollar collection..
The Credit Managers’ Index is now sitting at 55.8 for February and that is up a full point from January. Today’s data is the highest reading going back to April of 2011. There is one note of caution: “It is worth noting that last year was also affected by an oil shock at about this point and a back-sliding economy in the months that followed. However, readings from this month are solid in key categories providing some confidence regarding what happens from this point.”
Another description for the country’s mood is “cautious and perhaps a little encouraged as far as economic growth prospects are concerned.” The cautious part is based upon the sudden spike in the price of oil and gasoline. Another observation is that if the threat of high prices is temporary, then consumers and businesses will heave a sigh of relief and will continue to focus on the good news in place. Other positives include the employment situation, stronger demand, and better growth.
This report is broken down into two segments: favorable factors rose from 61.4 to 62.8, and that as the best reading since February 2011; unfavorable factors improved as well from 50.3 to 51.1.
JON C. OGG