Economic Conditions Approach Historical High for ARM Industry

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, has approached its historical high, although recent news suggests that this may be short lived.

For September 2005, the month for which the most recent economic information is available, the Index reached 1299.3, which is slightly less than June 2005′s all-time high of 1303.1. The index remains up 1.2% month over month and 11.1% year over year.

“While the Index continues to reflect broad economic conditions that are friendly to the ARM industry, there is trouble on the horizon,” said Paul Legrady, Director of Kaulkin Ginsberg’s Research Group. “By next month, the Index will reflect the recent spike in bankruptcy filings, as well as recent declines in the prices of ARM companies. These factors should place considerable downward pressure on the KGI.”

In September, the KGI’s upward movement was caused by most of its contributing variables.

The KGI is a product of Kaulkin Ginsberg’s Research Group, which provides industry-specific publications and custom research services to the ARM industry. For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi.cfm or call Paul Legrady, Director of Kaulkin Ginsberg’s Research Group, at 301-907-0840 ext. 104.