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The Sales Managers Index: India

Updated: August 15, 2017

Indian Sales Managers Confidence Dented by Problems Caused by the Imposition of GST but Recovery on the Way
  • The Market Growth Index down on previous highs but already back to previous average levels
  • Prices Charged Index falls back from July peak offering respite to consumers
  • 83% of companies indicated issues implementing GST in July

The Indian economy continued to expand in August but at a slower pace with a Headline Sales Managers’ Index (SMI) of 59.3, the lowest level since Summer 2013. The Government Sales Tax (GST), which came into force on the 1st July, has been attributed by sales managers as causing significant issues with stock supply and affecting their ability to perform their role adequately. The Market Growth Index which, monitors the overall state of business activity, has started to show signs of recovery in August at 60.7, up from 54.4 in July but below the recent high of 76.2 in April. In August, the level of the Business Confidence Index has fallen to the lowest level in 5 years but sales managers are still saying the impact of GST is likely to only last a few months before conditions improve again.

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 India SMI Data

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

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