Nov. 3, 2008 at 3:13pm

October credit index reports trouble in loans

The Credit Manager's Index for October revealed an increasing sense of doom among the participants, mirroring conditions in the rest of the economy, said Daniel North, chief economist for credit insurer Euler Hermes ACI, who analyzes the data and prepares the CMI report for the National Association of Credit Management.

The index fell 2.6 percent to a record low of 44.8 percent. Eight of the 10 components fell, nine are now below the 50 level, indicating economic contraction, and eight set record lows.

"The misery was spread all around but manufacturing fared the worst, losing 4.2 percent, while services fell 0.9 percent," said North, noting that manufacturing and services were below 50 percent for the second consecutive month. 

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