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The seasonally adjusted Credit Manager's Index for May rose to 45.4 from 44.3 in April, marking the fourth straight month the index has increased, according to a report released today by the National Association of Credit Management.
The index, a gauge of economic factors affecting credit and collection professionals, was down 6.7 points from 52.1 in May 2008, but is the highest since October when the index was 45.2.
Any score below 50 indicates economic deterioration. The index consists of four favorable factors, such as the amount of credit extended, and six unfavorable factors, such as accounts placed for collection and bankruptcy filings.
"The CMI data, combined with various other measures, suggest that the economy finally reached its lowest point [during the first quarter] and has been in the recovery stage since," Chris Kuehl, the association's economist, said in the report.
Kuehl added that the trend does not mean the economy will come "roaring back" in the next few months, but said that the second quarter will be the last quarter of negative gross domestic product as the third quarter should show some growth.
