NACM Credit Manager's Index: report for November 2005.(CREDIT MANAGER'S INDEX)(National Association of Credit Management )

The Credit Manager's Index rose to 57.4 in November, above October's 56.6. The Index is now 1.2% higher than last November and represents solid economic growth. An improvement in bankruptcy filings of 9.6% in manufacturing and 8.2% in services contributed most to the gain--a result of the rush to file for bankruptcy before the October deadline introducing more creditor-friendly bankruptcy laws. However, Dan North, Chief Economist with EulerHermes ACI, notes that this improvement was offset by a sharp deterioration in November sales, a pattern likely to be repeated in December as orders typically plunge after the peak holiday season. Aside from these offsetting effects, Mr. North says "it is worthwhile to note that both dollar collections and dollar amount beyond terms improved significantly, both for the month and the year ... this data suggests that buyers are able to make payments more easily and are likely to be in better financial health, and that business and economic conditions are looking up."

For the manufacturing CMI, a drop in new sales was counter-balanced by a lower rate of bankruptcies for the month of November. Credit managers reported that sales dropped from 68.9 percent to 60.7 percent, or 280 basis points. However, lower numbers of customers filing for ...