Credit Benchmark have released the October 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.
UK Industrial firms are in a positive position for the fourth time this month, suggesting a trend of improvement is forming. EU Industrial firms have registered another positive CCI for this month, which is the thirteenth consecutive instance of a positive score. Consensus opinion on credit quality for US Industrial firms is still in positive territory, although their CCI score has significantly decreased from last month.
UK Industrials: Ticking Along
Another month of mild positivity for UK Industrial firms, with a fourth consecutive instance of a CCI score above 50 – suggesting a trend of improvement is forming.
The UK Industrials CCI score is 50.6 this month; the CCI score has not risen above 51.5 in the past four months of improvements.
Nearly £50 million in government funding is being made available to support Britain’s industrial future.
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EU Industrials: Modest Improvement Continues
EU Industrial firms have registered another positive CCI for this month, which is the thirteenth consecutive instance of a positive score.
Whilst the trend was dipping close to neutral, the EU Industrials CCI score is 52.7 this month, a second large positive CCI score in a row.
Newly elected Assonave (the Italian shipbuilding industry’s trade association) Chairman Claudio Graziano urged new industrial policy to strengthen the Italy’s and Europe’s global shipbuilding competitiveness.
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US Industrials: Staying Positive
Consensus opinion on credit quality for US Industrial firms is still in positive territory.
However, the US Industrials CCI score this month is 50.7, a significant decrease from last month’s CCI score of 53.2.
President Biden signed an industrial policy bill known as the Chips Act last month, as an answer to the computer chip shortages that have devastated the supply chain in the fallout from the pandemic.
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