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The Sales Managers' Index: India

Released: June 24, 2014

Business Confidence Index at record high of 87.6 in June

  • Market and Sales Indexes reflect rapid growth
  • Prices growing at a modest rate
  • Staffing levels remain strong

The India Sales Managers’ Index brings together the collective wisdom of Sales Managers throughout India to produce the earliest source of understanding about the speed and direction of the economy.

The overall Headline Sales Managers’ Index for June (calculated from an average of the Confidence, Market Growth, Sales, Price and Staffing Indexes), reflects the general state of the Indian economy.

The Index registered 66.0 in June, up from 64.3 in May, indicating that the Indian economy is growing at an accelerating pace.

Business Confidence
The Business Confidence Index increased 87.6 in June, up by almost 5 points from May, the highest figure since the panel began in 2012.

Sales Managers remain very positive about the outlook for future business conditions. Panellists have signalled that the new government’s policy to increase investment and clear regulatory hurdles for businesses has been the main driver for confidence.

Market Growth
The Market Growth Index reflects growth of the general state of the market.

The June Index reading of 61.1 represents the biggest level of increase for a year, and the seventh month the Index has been above the 50 (no-change) mark, which divides growth from contraction.

The stable and rising trend is in line with the high level of Business Confidence seen over the past seven months and shows that the economy is now growing at a rapid pace.

Product Sales
The Product Sales Index represents sales made by respondents’ own companies and reflects rapid growth.

The Index stood at 66.8 in June, up by 2.7 points from May, the fastest pace since April 2012.

Prices Charged
The Prices Charged Index increased modestly in June as prospects of weak monsoon rains have increased the risk of rising food and fuel prices.

The Index edged up slightly to 52.9 in June, from 52.6 in May, the highest figure since April 2013, and the third month the index has been above the 50 (no-change) mark.

This suggests Sales Managers are still passing on operational cost rises to customers and businesses albeit at a modest rate.

Staffing Levels
The Staffing Index reflects the number of staff taken on compared to the same period last year.

The Index fell to 61.4 in June, from 63.3 in May, indicating that managers continue to add rapidly to payrolls although at a slower pace compared to last month.

World Economics Chief Executive Ed Jones commented:

"The overall Headline Sales Manager Index for June indicates that the Indian economy is growing at a rapid pace. All indexes are signalling robust economic growth in Q2 2014, with Business Confidence and Market Indexes seeing the largest levels of growth."


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Notes to Editors
The Sales Managers’ Index is produced by World Economics and is based on original survey data collected from a panel of Sales managers in all sectors of the Indian economy except those controlled by the Government.

The Sales Managers’ Index results are calculated by taking the percentage of respondents that report that the activity has risen (“Increasing") and adding it to one-half of the percentage that report the activity has not changed (“Unchanged"). Using half of the “Unchanged" percentage effectively measures the bias toward a positive (above 50 points) or negative (below 50 points) index. An example of how to calculate a diffusion index: if the response is 40% “Increasing," 40% “Unchanged," and 20% “Reducing," the Diffusion Index would be 60 points (40% + [0.50 x 40%]). A value of 50 indicates "no change" from the previous month.

The more distant the index is from the amount that would indicate "no change" (50 points), the greater the rate of change indicated. Therefore, an index value of 58 indicates a faster rate of increase than an index value of 53, and an index value of 40 indicates a faster rate of decrease than an index value of 45. A value of 100 indicates all respondents are reporting increased activity while 0 indicates that all respondents report decreased activity. 

About the Sales Managers’ Index
The Sales Managers’ Indexes are a set of unique economic activity reports covering a wide range of sectors and industries (except those controlled by Government) in over 70 countries worldwide. The Sales Managers’ Indexes provide the earliest indication each and every month of the direction of economic activity, and the speed at which its markets are growing. 

Sales Managers are unique as an occupational group in being really at the front line of economic activity. The Sales Manager is ideally placed to feel the first few whispers of caution in the market or to see the new green shoots of economic recovery. 

The Sales Managers’ Index brings together the collective wisdom of Sales Managers and consequently produces the best and earliest source of understanding about what’s really happening in the economy. 

The Sales Managers’ Index has been developed by World Economics, a leading edge provider of original economic data. Sister products include the World Economics Journal, the World Price Index, the Global Marketing Index, and Country Growth Trackers.

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680 days ago
Good to see real expertise on display. Your contributoin is most welcome.

aruna nishanka
818 days ago
This is a niceĀ initiativeĀ from you, thank you

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