23 Mar 2012

Credit Management News

The Credit Managers Index & Atradius Market Monitor provides you the latest trends in credit management and payment behavior. Below you find the most recent results:

Credit Managers’ Index
The Credit Managers’ Index USA is at its highest since April 2011, sitting at 55,8 which is a full percentage point above January’s reading. “The mood of the country could best be described as cautious and perhaps a little encouraged as far as economic growth prospects are concerned,” said Chris Kuehl, PhD, economist for the National Association of Credit Management (NACM).

There are a lot of positive sounds, but the price of oil and its impact on the price of gasoline is something to be aware off. In the past this has caused the economy to go into recession, but the consumers now are more cautious . Luckily the situation is not expected to last, Kuehl noted. When people know this threat is temporary, consumers and business’s will focus on the good news that has dominated the start of the year. “There has been good news on the job front, better demand numbers, better growth numbers and better numbers in the CMI,” he said.

The sales number is one of the most watched and it reached a level not seen since last April (64.4). “Once there is positive movement in the general sales category, there is often improvement in the index of unfavourable factors as well,” said Kuehl. “An expansion in sales allows companies to catch up on their debt and improve their overall credit standing.” More information on the Credit Managers’ Index in USA.

Atradius Market Monitor
Atradius offers several publications on topics interesting for credit managers all over the world. Twice a year the Atradius Payment Practices barometer is presented, and they also publish monthly market snapshots.

The latest publication was the Market Monitor, focusing on construction performance and outlook (February 2012). The construction sector has been experiencing a difficult period because of the economic situation. A recent report (Global Construction 2020, Oxford Economics) forecasts that global construction output will outpace the world’s GDP over the next decade. This will mainly be caused by rapid urbanisation and economic growth of specific emerging markets like China, India and Brazil. The US will also contribute in this growth, with an upturn in both residential and non-residential construction.

Since construction businesses are currently caught up in difficulties caused by the Eurozone crisis, the optimism should be cautious. In the coming years the expectations are that (according to Eurocontruct’s November 2011) the European construction output will decrease 0,3% in 2012 after already contacting 0,6% last year, with those dependent on publicly funded projects the worst affected because of the austerity packages initiated by many European governments.

If you want to know more about the Atradius Market Monitor on construction or another sector, go to the Atradius website.