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The Sales Managers Index: Africa

Released: October 18, 2016

Pan-African Economy Contracts in October

  • Nigerian recession continues for third straight quarter
  • South African economy close to recession
  • Pan-African market growth dives into contraction territory

The World Economics Headline Sales Managers’ Index (SMI) for Africa – a composite indicator providing the most up-to-date monthly assessment of economic activity in the region – slowed to 50.8 in October from 52.0 in September. The Pan-African Market Growth Index is now below the 50.0 ‘no change’ level which separates growth from contraction. This level indicates that the Pan-African economy has stalled and could be entering a new period of contraction. Nigeria, the continents largest economy, is continuing in recession for the third straight quarter and the data suggests that there will not be a substantial improvement during the latter part of the year. South Africa is fairing a little better with low levels of growth. The North African countries also continue to struggle with muted economic activity caused by low oil prices and security concerns.

Headline Sales Managers' Index

Sales Managers' Index Trends
  Direction Speed
SMI Growing Very slowly
Business Confidence Growing Fast
Market Growth Falling Slowly
Sales Output Falling Modestly
Prices Charged Growing Slowly
Staffing Levels Falling Solidly

About Pan-Africa SMI Data

The Sales Managers Index provide the earliest monthly data on the speed and direction of Pan-African economic activity.

Key advantages of the Pan-Africa SMI:
  • The SMI provides the first indication each month of the speed and direction of economic growth in Africa.
  • The SMI provides the most complete indication of growth, covering all private sector activity.
  • The SMI is based on a key occupational group - uniquely able to sense changes in business activity levels.
  • The SMI is composite index of business confidence, market growth, sales, prices charged and staffing levels.
  • The SMI is a diffusion index, any index value above 50 indicates growth and below 50 indicates contraction.

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