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The seasonally adjusted Credit Manager's Index for November fell 2.6 points from October to a record low 42.2, according to a report by the National Association of Credit Management. The index, a gauge of economic factors affecting credit and collections professionals, was down 10.9 points from 53.1 in November 2007. 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 bankruptcy filings. Eight of the 10 components fell, and all 10 are now below 50. Seven set record lows, according to the report. The index provides a benchmarking and forecasting tool based on the entire cycle of business transactions from sales to collections. "The macroeconomic data continue to describe an economy which is in bad shape and which seems to be deteriorating," Daniel North, chief economist for credit insurer Euler Hermes ACI, said in the report.
