Credit Manager's Index posts strong February

The National Association of Credit Management’s Credit Manager’s Index for February shows significant gains in manufacturing but modest growth in the service sector, compared to January results.
The manufacturing sector recorded a 510 basis-point improvement in February, from a rating of 50.6 to a rating of 55.7. It was the largest monthly increase since March 2003.
The service sector increased 80 basis points, from 54.7 to 55.5.
CMI is a monthly survey of the business economy from the standpoint of commercial credit and collections. A CMI reading in excess of 50 indicates the economy is expanding; a reading below 50 indicates a declining economy.
New credit applications and new sales led to improved ratings in both sectors.
In manufacturing, those two factors were up 1,420 and 1,330 basis points, respectively.
In services, new credit applications went up 570 basis points, while new sales were up 470 basis points.
The only negative factor on the rise was the number of rejections of credit applications, which continues to grow as it has for several months.
Manufacturing and service sectors combined, CMI in February was 55.6, down from 56.5 one year ago.
The index is based on a survey of about 500 trade credit managers during the last 10 days of the month, with approximately equal representation between manufacturing and service sectors. The survey asks respondents from all over the country to comment on whether they are seeing improvement, deterioration or no change for various favorable and unfavorable factors.