Third consecutive fall for overall economic confidence
Press release – 13 October 2016
Confidence in the UK’s economy has fallen again, being driven primarily by a steady decline in manufacturing, according to preliminary results from the Chartered Institute of Credit Management’s (CICM) latest quarterly barometer.
Early indications from Q3 of the Credit Managers’ Index (CMI) show a third consecutive quarterly fall in the index’s headline figure, representing a worrying trend. The results goes against recent economic data as well as a survey of credit professionals prior to the referendum vote that concluded half of all credit professionals believed a Brexit vote would have little or no impact on their business.
In results that mirror Q2, the Index’s Q3 preliminary results show it has been most affected by the falling confidence in the manufacturing sector, which is down four percent to 54.9. The services sector is more optimistic and remains broadly flat, ensuring the headline result remains above the 50-point threshold and now stands at 55.3, representing a 0.8 point-fall on Q2.
The CMI is a diffusion index producing ‘scores’ of between one and 100 (typically in a range of 40 – 60). Ten equally weighted factors are included – three favourable and seven unfavourable – and the index is calculated on a simple average of the ten factors.
All favourable factors, credit sales, new credit applications and the order book, increased in Q1 and Q2, however Q3’s preliminary findings show all three have fallen. Four of the seven unfavourable factors have also worsened.
For further press information, please contact:
Sean Feast or Alex Simmons – Gravity Public Relations
0207 330 8810, email firstname.lastname@example.org
The Chartered Institute of Credit Management (CICM) is Europe’s largest credit management organisation. The Institute was granted its Royal Charter on 1 January 2015. The trusted leader in expertise for all credit matters, it represents the profession across trade, consumer and export credit, and all credit-related services. Formed over 75 years ago, it is the only such organisation accredited by Ofqual and it offers a comprehensive range of services and bespoke solutions for the credit professional as well as services and advice for the wider business community, including the acclaimed CICM/BEIS Managing Cashflow Guides (www.cicm.com).
Linkedin: CICM Credit Community