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The seasonally adjusted Credit Manager's Index for September fell 3.3 percentage points from the previous month to a record low of 47.4%, according to a report by the National Association of Credit Management. The index, a gauge of economic factors affecting credit and collections professionals, fell 7.4 percentage points from 54.8% in September 2007. Any score below 50 indicates economic deterioration. The index consists of five favorable factors, such as the amount of credit extended, and five unfavorable factors, such as bankruptcy filings. All 10 components of the index fell in September, leaving eight below 50 and seven at record lows, according to the report. The index provides a benchmarking and forecasting tool based on the entire cycle of business transactions. "Clearly the significant downward trend reflects an economy, which has been weakening for some time and now seems to be on a somewhat steeper downward trajectory," Daniel North, chief economist for credit insurer Euler Hermes ACI, said in the report. "Certainly the clogged credit markets have contributed to this decline on top of high energy prices and the abysmal housing market," said North, who analyzes the data and prepares the monthly report for the National Association of Credit Management.
