There is a small up-tick of 20 basis points in the overall CMI for October, a result of improvement in the service sector, which was partially offset by continuing slowness in the manufacturing sector. It appears that the declining month-over-month slowing in growth of the past few months may continue through November.
MANUFACTURING SECTOR RESULTS
The manufacturing sector index shows minimal change from last month: 57.4 versus 57.6. However, the makeup of the current index is troublesome. Each of the favorable factors declined. Overall, the fall was 340 basis points. The erosion in ?new credit applications? and ?amount of credit extended? suggests continuing slowness in sales will occur in November. This forecast is supported by the increase in ?rejection of credit applications??more accounts being denied trade credit. There is some good news in these results, as evidenced by improvements with ?disputes? and customer balances beyond terms. It appears that problem accounts are being closely managed.
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