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The seasonally adjusted Credit Manager's Index for October fell 2.6 percentage points from the previous month to a record low of 44.8%, according to a report by the National Association of Credit Management. The index, a gauge of economic factors affecting credit and collections professionals, fell 9 percentage points from 53.8% in October 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. Eight of the 10 components fell, nine are now below 50, and eight set record lows, according to the report. The index provides a benchmarking and forecasting tool based on the entire cycle of business transactions. "The seasonally adjusted Credit Manager's Index for October revealed an increasing sense of doom among the participants, mirroring conditions in the rest of the economy," Daniel North, chief economist for credit insurer Euler Hermes ACI, said in the report.
