Economics
U.S. Firms Extend Credit at ‘Ballistic’ Pace in Bet on a Recovery
- Credit managers index rose to a near record in December
- Companies investing in automation to combat labor shortages
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A gauge of U.S. firms extending credit climbed in December to the highest level in almost 18 years, signaling a strong bet on the economy’s prospects and heavy investment in automation.
A National Association of Credit Management index, which tracks credit extended to both the manufacturing and services sectors, increased to 72.3 in December, the highest reading since 2004. The gauge has been mostly rising since hitting an all-time low of 41.6 in April 2020.