World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data


The Sales Managers' Index: India

Released: November 25, 2014

Product Sales grow in November to highest level on record

  • SMI increases for the first time since July
  • Market Growth falls but Confidence remains very high
  • Prices Charged falls for the fifth consecutive month

The World Economics India Sales Managers’ Index (SMI), a composite indicator, provides the most up-to-date monthly assessment of economic activity in the country.


Overview
The Headline Index (derived from an average of the Business Confidence, Market Growth, Sales, Prices and Staffing Indexes) rose for the first time in four months in November. The Index increased to 67.4, up from 66.8 in October, the highest level since July, and indicated that the Indian economy is rising at a faster pace compared to last month.


Business Confidence
The Business Confidence Index rose for the second month in a row in November. The Index stood at 93.8, up from 92.5 in October, marking the highest level since the panel began in February 2012. Sales Managers expect the overall economic situation to become better over the coming months.


Market Growth
The Market Growth Index fell for the second straight month running in November to reach a value of 63.5, down from 63.6 in October. This indicated only a marginal decline and suggested that surveyed companies continued to experience strong levels of market expansion.


Product Sales
The Product Sales Index increased to 72.4 in November, from 69.9 in October, the sharpest increase in three months of consecutive rises, and the fastest pace since the panel started in 2012. Panel members commented that the surge in sales was mainly helped by lower prices of food and fuel as global crude oil prices continue to fall.


Prices Charged
The Prices Charged Index fell again in November and is now below the neutral 50 mark that separates growth from contraction. The index fell to 49.7, from 50.7 in October, indicating the fifth successive month of declines, and that inflationary pressures continue to ease.


Staffing Levels
The Staffing Index increased marginally to 55.9 in November, from 55.8 in October. This marked the first time that the Index has increased in six months, and suggested employers continued to add to payrolls at a strong pace.


World Economics Chief Executive Ed Jones commented:
“November’s SMI reading pointed to a faster rate of economic expansion in India, with Business Confidence and Sales Products rising at the fastest pace since the Index started in 2012. Market Growth continued to rise strongly but at a slightly slower pace compared to the previous month. Staffing Levels rose for the first time in six months while Prices Charged fell for the fifth consecutive month. This ongoing fall in prices, can be mostly attributed to the continuing decrease in the global price of oil.”






 













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Methodology
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’ Indexes
The Sales Managers’ Indexes are a series of new products available for Africa, Asia and the Americas, designed to raise the voice and profile of sales people throughout the world. 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 Chinese 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, as well as the China, India and Eurozone Growth Monitors.



About World Economics
World Economics is an organisation dedicated to producing analysis, insight and data relating to questions of importance in understanding the world economy.

Currently our primary research objective is to encourage and assist the development of better and faster measures of economic activity. In cases where we believe we can contribute directly, as opposed to through highlighting the work of others, we are producing our own measures of economic activity.  

Our work is mainly of interest to investors, organisations and individuals in the financial sector and to significant corporations with global operations, as well as governments and academic economists.

 
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There are 11 comments on this paper.
(Have an opinion? Add your Comment above)

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Can I get information about productivity in dairy business

Satinder pal singh sawhney
24 days ago
Thanx

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

aruna nishanka
964 days ago
This is a nice initiative from you, thank you




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