NACM Credit Manager's Index: report for October 2005.(CREDIT MANAGER'S INDEX)

The Credit Manager's Index remained unchanged in October. Sharp deteriorations in bankruptcy filings, sales, and new credit applications were offset by modest increases in the other seven components of the Index. "As noted previously, the worsening in bankruptcy conditions was quite likely driven by the switch to more creditor-friendly bankruptcy laws on October 17th," says Dan North, Chief Economist with credit insurer Euler Hermes ACI.

"In the manufacturing sector, sales took a steep fall of 5.2 percent, however this fall appears to be seasonal in nature, since orders for the holiday season have almost certainty peaked. This erosion in sales is often seen in November and December as well," adds North. "New credit applications worsened in both sectors, suggesting, like the fall in sales does, a seasonal drop off in demand. Overall, the CMI remains at 56.6 versus 56.4 last year, demonstrating solid, if unexciting growth."

The NACM Manufacturing CMI remained virtually unchanged for October 2005. The overall CMI dropped 50 basis points, to finish at 56.0 percent. After a record high in September, sales ended at 68.9 percent, or down 520 points. There was also a comparable ...