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Press Releases ARM Economic Conditions Continue to Worsen March 13 , 2008: ROCKVILLE, MD - The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, dropped another 5.2% in the fourth quarter of 2007 to 1253.5. As the U.S. economy has slowed, the Index has dropped to its lowest point in two years. “Economic conditions are making it more difficult to collect bad debt,” said Paul Legrady, a Director of Kaulkin Ginsberg Director. “We should continue to see further decreases in the Index in the coming months.”
During the fourth quarter of 2007, the KGI was weighed down by four of its seven contributing variables. The unemployment rate increased from 4.7% to 5.0%. The market capitalization of publicly traded ARM companies fell dramatically from $2.16 billion to $1.67 billion. The federal funds rate decreased from 4.76%% to 3.94%. The number of bankruptcy filings across the country also increased from 210,449 to 218,909. All of these factors reflect increasing difficulty in recovery or liquidation of bad debt. The Index’s changes in Q4 2007 were caused by the following factors:
* See “How is the KGI Calculated,” www.kaulkin.com/research/kgi/calculate.cfm For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi or call Paul Legrady at 301-907-0840 ext. 104.
About Kaulkin Ginsberg Company |
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