Sales in both the manufacturing and service sectors increased at a rate not seen in more than a year, according to the March Credit Managers' Index, released Thursday by the National Association of Credit Managers.
The overall index increased to 55.7 from 55.2 a month earlier. Numbers higher than 50 indicate positive movement.
Sales in service and manufacturing increased by nearly five points, faster than any increase since early 2008, despite no increase in new credit applications. Much of the gain is attributed to recent increases in consumer demand.
Negative factors, such as accounts placed for collection and dollars beyond terms, remained steady.
“It is early in the process, but if one couples this data with reports from other sectors, there is reason to assume there will be some pretty decent progress ahead in the coming months,” said Chris Kuehl, economic analyst for the NACM, in a news release. “The consumer is getting a little more confident, despite the fact that there has been no change in personal income, and the business confidence level has also expanded."
The outlook for coming months also remains positive, with the indicator index for both service and manufacturing around 55.
The first quarter of 2010, according to the release, was essentially flat after decent increases in the last part of 2009. This is better than the prediction of most economists, who feared that early 2010 would erode the gains made at the end of the previous year.[[In-content Ad]]
