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The Sales Managers Index: China

Updated: August 15, 2017

China’s Prices Charged Index Hits 40 Month High
  • Sales Managers’ Index suggests consistent levels of economic growth
  • Business confidence for improving conditions remains low
  • Staffing Levels Index registers ‘no growth’

Sales Managers’ Index (SMI) data shows that the Chinese economy grew at a solid rate in August after the July SMI grew to the highest level for 26 months. The Headline SMI for August was 52.4, down by 0.4 on the previous value. Business confidence in August dipped slightly with a modest index value of 51.1 – this level suggests that sales managers are not optimistic that the current levels of business activity will improve over the coming months. As with the Business Confidence Index the Market Growth Index was down 0.8 index points on the previous month, despite this dip, sales remained strong during the month continuing the increased levels reported in June and July. The higher index values are being boosted by improving new orders in the manufacturing sector while the sales of consumer goods and services have remained consistent month-on-month. Price inflation in China, as measured by the Prices Charged Index, reached a 40 month high in August, mainly due to increased producer prices. Overall, the China SMI data suggests that the Chinese economy is maintaining its recent levels of momentum but panel managers are not expecting dramatic shifts in the economy over the coming months.

Sales Managers' Index (SMI)

The Headline Sales Managers’ Index (SMI) – a composite indicator designed to provide the most up-to-date assessment of business activity.

Business Confidence Index

The Business Confidence Index measures the level of optimism/pessimism amongst sales for future conditions.

Market Growth Index

The Market Growth Index monitors the underlying growth of the market segments into which the panel members sell.

Sales Growth Index

The Sales Growth Index defines the speed and direction of overall sales of goods and services made by business during the month.

Prices Charged Index

The Prices Charged Index measures the speed and direction of changes in the current price of goods and services taking into account any discounts offered.

Staffing Levels Index

The Staffing Levels Index monitors the level of growth or decline in employment against the same period a year earlier.

About China SMI Data

The Sales Managers Index provide the earliest monthly data on the speed and direction of  the China's economic activity.

Key advantages of the China SMI:
  • The SMI provides the first indication each month of the speed and direction of economic growth in China.
  • 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.

© Copyright World Economics Ltd. 2017