ARM Index Down Slightly throughout 2005

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, ended 2005 by increasing a healthy 2.1% in December. However, the KGI was down 1.2% throughout 2005, making this the first calendar year in which the Index decreased since 2002.

“While the KGI lost some ground in 2005, the economic conditions underpinning the ARM industry remain near historic highs,” said Paul Legrady, Director of Kaulkin Ginsberg’s Research Group. “With interest rates increasing for the time being and bankruptcy filings returning to moderate levels, we expect the KGI to regain an upward trajectory in the months ahead.”

The index increased and decreased moderately throughout 2005.

In December 2005, the Index’s increase was caused by four of the Index’s seven macroeconomic variables: Unemployment Rate, Federal Funds Rate, Outstanding Consumer Credit and Total Market Cap of ARM Stocks.

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.