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The Sales Managers Index: Africa

Released: August 25 , 2015

African SMI accelerates to 28-month high in August

  • Nigeria continued to lead Africa economic growth
  • Business confidence still very high
  • Job creation remains modest and stable

The Headline Sales Managers’ Index for Africa posted 60.2 in August, up from 59.3 in July, indicating a further improvement in business conditions across the African continent. All five components of the SMI contributed to a higher reading and the latest headline figure was the fastest since May 2013. Of the economies covered, Nigeria posted the highest reading (66.3), followed by Egypt (64.2), Algeria (58.9) and South Africa (53.6). Although conditions were favourable in all these countries, a number of panellists expressed concerns about falling energy prices, security issues, and power outages.

Sector analysis indicates that the Pan-Africa Manufacturing SMI inched up to 58.1 while, the Services SMI rose to 61.1 from 59.7 on the previous month. These index values show an overall strengthening in business activity in both sectors.

The Business Confidence Index, which measures how Sales Managers’ expect the economy to perform over the coming months, remained very high at 75.6 in August, little-changed from its value in July. Companies in Nigeria, Egypt, and Algeria were the most upbeat, whereas companies in South African were the least positive.

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