NACM Credit Manager's Index: report for September 2006.(CMI)(National Association of Credit Management)

The seasonally-adjusted Credit Manager's Index (CMI) took another small step down in September. The Index fell from 57.3 to 57.1 as six of the 10 components for the combined sectors fell. "However, all 10 components still remain above 50, indicating economic expansion," said Dan North, Chief Economist with credit insurer Euler Hermes ACI. "The CMI continues to show an economy with good momentum, but one which is slowly trending downward, probably due to the combination of a plummeting housing market and tightened monetary conditions."

"The manufacturing sector index once again lagged the performance of the service sector, turning in a drop of 0.5% on a seasonally adjusted basis," noted North. He continued, "In addition, two of the components--disputes and the amount of customer deductions--are now below 50, indicating contraction. The concrete, steel, electrical components and rubber manufacturers were particularly hard hit, no doubt because of the weakening housing and construction markets. New credit applications and the amount of credit extended suffered the largest drops, suggesting weakening demand on the buyers' side."

The service sector index rose 0.2% on a ...