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The Sales Managers Index: India

Released: May 17 , 2016

New Business Sales Driving Rapid Indian Growth

  • Business confidence remains at a very high level
  • Employment growth maintains strong positive trend
  • Prices charged for goods and services remain stable

The Sales Managers Index (SMI) for May was effectively unchanged on the level seen in April and suggests that the Indian economy is growing on a sustainable path within its capacity. Evidence of rapid growth, as reported by the SMI, has been consistently maintained for the past 22 months and is in-line with official GDP data showing a 7.5% - 8.5% annualised rate of growth.

The Headline Sales Managers’ Index for May moved up slightly from the level reported in April to reach 68.7 indicating that the Indian economy is continuing to grow rapidly.

The Business Confidence Index rose in May, close to the levels reported in Q4 2014. Overall, panellists are very confident that favourable business conditions will continue. Monthly Sales Growth Index has also risen for the past 30 months in India. Sales managers are still reporting very favourable conditions which is driving the high levels of business optimism.

The Prices Charged Index for goods and services has remained close to the 50 level since January which indicating that sales managers are keeping price rises to a minimum and maintaining their profit margins by driving new sales.

The Indian economy is experiencing a period of high growth driven by strong sales, stable prices and increasing employment levels. These factors are likely to keep India’s economy growing at rapid levels for the foreseeable future.




 








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About the Sales Managers’ Indexes
The Sales Managers’ Index has been developed by World Economics, a leading edge provider of original economic data. Sister products include the World Price Index, Global Marketing Index, World Economics Journal, as well as country level Growth Trackers. 

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


Key advantages of the US SMI:
  •   The SMI provides the first indication each month of the speed and direction of economic growth.   
  •   The SMI provides the most complete indication of growth, covering all private sector activity.
  •   The SMI is based on a key occupational group - sales executives - uniquely able to sense accurate changes in business activity levels.

  •  The SMI survey base - salespeople - are used by virtually all businesses, unlike other occupational groups.

  •   The SMI's focus on the world’s growth areas – providing comparative data for Asia, the America's and Africa.



Notes to Editors
The SMI’s (Sales Managers’ Indexes) are compiled and analysed by World Economics and are based on survey data collected from a panel of US companies balanced by the all Industry Classification Board (ICB) sectors which are weighted to reflect their contribution to national Gross Domestic Product.

The Sales Managers’ Index results are calculated as
diffusion index which have the characteristics of leading indicators by taking the percentage of respondents that report that 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.

Three month Moving Averages are applied to each index to mitigate the effect of seasonal variations, original un-adjusted data are not revised after publication.



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. Its parent company Information Sciences Ltd has a long history of the development of key business information today used throughout the world, including the origination of the Purchasing Managers Indexes in Europe and Asia (now owned by Markit), and the development of WARC a global information provider for major corporations.

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.

About the Sales Managers’ Indexes
About the Sales Managers’ Indexes
About the Sales Managers’ Indexes
About the Sales Managers’ Indexes
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