Sales Managers' Indexes
The Sales Managers' Indexes provide the earliest monthly data on the speed and direction of economic activity in the fastest growing areas of the world: Africa, Asia and the America's.
Key advantages of the SMI's :
Why the SMI's are needed
Businesses need growth. Unfortunately much of the worlds growth today derives from countries where economic data is either entirely missing, hopelessly incomplete or just fabricated. The Economist (15.5.14) highlighted the problem in relation to Africa, "Africa is the continent of missing data. Fewer than half of births are recorded; some countries have not taken a census in decades".
World Economics has recently highlighted (in Africa, Asia, and The America's) the huge under-recording of most countries GNP data due to out of date base years and the unrecorded shadow economy.
The SMI's bypass all the data faults of official statistics by obtaining representative samples of replies from panels of salespeople specifically set up to monitor levels of activity. Traders, economists and Government no longer need to guess if Nigerian growth is faltering, or if the Philippines is taking off as a growth market. As a consequence, over 40,000 economists, traders, bank officials, government advisors and others use World Economics data each month.
Data Quality Index
The Data Quality Index is designed to review the accuracy of GDP data worldwide. Most GDP data is flawed to an extent not many realise, very few countries achieve the high standards which such important data should meet.
World Economics has developed a new way to gauge the quality of individual countries GDP data: the Data Quality Index (DQI). The DQI currently covers 5 factors of importance in determining data quality: base years used, national accounts standards used, size of the informal economy, resources devoted to measuring economic activity, and the intensity of corruption. Further factors will be added in early 2016. Currently 154 countries are covered by the Index.
Global Growth Trackers
The Global Growth Trackers focus on the very latest data for the largest and fastest growth areas of the world.
Noted by Citi Global Markets as:
“a good summary can be found at the China Growth Tracker of World Economics Website.”
World Price Index
The World Price Index is calculated monthly from a basket of internationally comparable goods and services. It is designed to alleviate the horrendous problems associated with analysing economic or market data using currency market exchange rates.
To illustrate the problem:
"Imagine that over the last 4 years the US economy has shrunk by 30% and the Chinese economy grown at 2% not 10%. Imagine house prices in the UK have dropped 60% ...This frozen wasteland is not some alternative universe , but what reality already looks like when expressed...in the Japanese Yen"
(quoted from an FT article by Peter Tasker in 2011)
Exchange rates vary with extraordinary rapidity, frequently with little obvious link to economic reality, but fatally distorting the perception of value in markets and economies. It is vital when analysing international data, whether for market analysis purposes, or to allocate resources across the globe, to review data using an international yardstick of value. This can only be done using Puchasing Power Parities (PPP), which make allowance for the purchasing power of currencies within individual countries to make comparisons based on a standard currency, usually "international dollars".
There are various sources of PPP data, but most are of only academic interest as they are years out of date. The World Price Index is the only available index updated monthly to provide an easy way of reviewing trends or relative values of market or economic data in realistic terms.
Global Marketing Index
The Global Marketing Index ( GMI ) is designed to track changes in the speed and direction of advertising and marketing investment.
Advertising and marketing investment includes spend on mature media such as TV, print , radio, and out of home. Plus spend on digital advertising in social media , mobile and other newly minted forms of communication , now growing at breakneck speed and threatening to overtake traditional media in the future. The GMI tracks changes in budget allocation between these types of advertising and marketing, and activity levels in major geographic areas.
The GMI is a valuable complement to the Sales Managers Index as an economic indicator, as the GMI acts as a proxy indicator for the all important Consumers Expenditure slice of GDP. Advertising and marketing spend is concentrated in areas of high expenditure by consumers (automobile, food and drink, household goods, personal care products, etc) and hence is directly linked to the state of consumer markets which account for 50% or more of GDP in advanced economies.