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The Sales Managers Index: United States

Released: February 21, 2017

SMI Signals Faster Growth for U.S. Economy

  • Headline Sales Managers’ Index (SMI) reflects strongest level of growth for 15 months
  • New Factory Orders drive improving manufacturing sector growth
  • Business Confidence continues to accelerate

The Headline Sales Managers’ Index (SMI) increased in February, recording an index level of 53.0, the highest level for 15 months and representative of gathering momentum for the economy as a whole. Strong sales growth in February is indicated by the Sales Growth Index (53.2) along with buoyant levels of business confidence. Prices for goods and services continue to increase in the U.S., at around the 2.5% mark but with little impact on profit margins. The recent price rises have been more evident in the Manufacturing sector as a result of higher input costs partly explained by higher prices charged by Chinese exporters (see China SMI).

Headline Sales Managers' Index 

Sales Managers' Indexes Trends

Direction Speed
SMI Growing Faster
Business Confidence Growing Faster
Market Growth Growing Faster
Sales Output Growing Faster
Prices Charged Growing Modesty
Staffing Levels Growing Slowly

Business Confidence Index

Sales Growth Index

Manufacturing Sector
Sales Managers in the U.S. Manufacturing sector reported improving market sector growth (52.2) in February, higher new orders (51.5) and modest input prices growth causing Manufacturers to pass on cost increases to purchasers (54.1). The Business Confidence Index for Manufacturing recorded an increase in the level of Confidence among managers.

Business Confidence Index for Manufacturing

New Orders Growth Index for Manufacturing

Services Sector
The service sector, which represents a large proportion of GDP, continued to grow in February with a Headline SMI reading of 52.6. Sales of Services (53.8) grew modestly from January along with a lower Prices Charged Index level of 53.1, signalling a slight easing of consumer price inflation. The trend of improving business confidence held broadly steady in February with the level of the index at 54.1.

Prices Charged Index for Services

New Sales Growth Index for Services

About United States SMI Data

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

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