CREDIT MANAGER’S OUTLOOK 70s for the last twelve months. The index of unfavorable factors slipped as well – from 52.5 to 51.9 but this is a fairly modest adjustment and the data is still in expansion territory. There was not much change in the sales category as the reading dropped out of the 70s. The current number is 69.0 and last month it was at 74.7 (but in June it was sitting at 68.2). The new credit applications number saw a more dramatic shift from 71.9 to 63.4. This takes readings back to where they have been through much of the year. The dollar collections data barely budged with a reading of 65.0 compared to the 65.5 noted last
month. The most dramatic change was seen in the amount of credit extended category as there was nearly a 15 point move from 54.3 to 68.7. As mentioned above there is evidence of significant hoarding (or more politely – stockpiling) as manufacturers worry about supply chain failures and future inflation. There was very little movement in the data for rejections of credit applications as it was at 53.7 in July and this month it stands at 53.1. There was actually some improvement in the accounts placed for collection data as it went from 51.6 to 53.1 on the strength of some determination to stay current
with credit. The disputes category remained in contraction territory but it is slightly less deeply entombed as the reading this month is 48.3 and last month the numbers were at 47.3. The dollar amount beyond terms data slipped almost into that contraction zone with a reading of 50.8 contrasted with the 54.3 noted in July. The dollar amount of customer deductions also veered very close to contraction with a reading of 50.0. It was slightly more comfortable in July at 50.6. The data on filings for bankruptcy shifted down a little from 57.5 in July to 56.5 this month but in general there has been good news as far as numbers of bankruptcies.
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Manufacturing Outlook / September 2021