Credit Benchmark have released the February Credit Consensus Indicators (CCIs). The CCI is an index of forward-looking credit opinions for US, UK and EU Industrials based on the consensus views of over 20,000 credit analysts at 40+ of the world’s leading financial institutions.
Drawn from more than 950,000 contributed credit observations, the CCI tracks the total number of upgrades and downgrades made each month by credit analysts to chart the long-term trend in analyst sentiment for industrials. A monthly CCI score of 50 indicates neutral credit quality, with an equal number of upgrades and downgrades made over the course of a month. Scores above 50 indicate that credit quality is improving. Scores below 50 indicate that credit quality is deteriorating.
EU Industrial firms continue their run of positive credit movement, with a 17th month of improvement. UK Industrial firms continue to register a negative CCI this month. US Industrial firms return to negative credit balance.
UK Industrials: Trend of Net Deterioration Forms
UK Industrial firms continue to register a negative CCI this month, which is the third consecutive instance of a negative score.
The UK Industrials CCI score is 49.6 this month, a slight improvement from last month’s CCI of 48.7.
The UK’s manufacturing sector contracted in January for the sixth month in a row as it was hit by inflation, shortages and weak demand.
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EU Industrials: Modest Improvement Continues
EU Industrial firms have registered another positive CCI for this month, which is the seventeenth consecutive instance of a positive score.
Whilst the trend was dipping close to neutral in Jun-22, the EU Industrials CCI score has remained above 52.3 for the last six months. The EU Industrials CCI score is 52.8 this month.
The energy crisis, along with steps taken by the US, China and others, poses a significant challenge and calls for a bold new EU industrial strategy.
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US Industrials: A Turn for the Worse
This month US Industrial firms ended their streak of five consecutive month of positive credit balance, with a return to negative credit balance.
The US Industrials CCI score this month is 48.4, a decrease from last month’s CCI of 51.2.
The recently presented Green Deal Industrial Plan aims to provide a more supportive environment for the scaling up of the EU’s manufacturing capacity for the net-zero technologies and products required to meet Europe’s ambitious climate targets and to take on US and China.
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