World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data

The Sales Managers' Index: United States

Released: April 22, 2014

Strong Market Growth seen in April

  • The SMI Index shows rising overall economic activity
  • Business Confidence increases to a record high
  • Payrolls rise to reflect firm demand

The Sales Managers’ Index is the first all sector monthly economic activity index release covering the US economy.

The overall Sales Managers’ Headline Index for April registered a value of 59.8 (calculated from an average of the Confidence, Growth, Price and Staffing Indexes).

Business Confidence
The Business Confidence Index increased to 71.2 in April up by 1.0 from March. This is the highest figure based on the moving average reached for this index for over 2 years.

The high level of this index shows that most Sales Managers are very confident about the prospects for their businesses in coming months.

Market Growth
The Market Growth Index reflects growth of the general marketplace in panellists’ own industry sectors.

Sales Managers’ report that overall Market Growth was strong in April with an index value of 60.4 indicating rapid market expansion. Many panellists reported seeing an increase in enquiries coming through.

Product Sales
The Product Sales Index represents sales made by panellists’ own companies. The April Index registered 57.5, the fifth successive monthly rise and the third month the index has been above the 50.0 no change level.

Sales Mangers in most sectors reported that they had more orders scheduled to ship in April than the previous month.

Prices Charged
The Prices Charged Index fell by 0.8 to 56.0, the same level attained in January. Panellists reported that they were still raising prices in line with growing demand, but the rate of increase may be abating.

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

The Index value of 53.8 in April is up slightly from its March value of 53.1. This shows that the jobs market continues to be active with managers reacting to increased demand in the marketplace by adding to payrolls.

World Economics Chief Executive Ed Jones commented:

"These figures suggest that market growth is strong across the US while a record level of Business Confidence suggests that Sales Managers expect these trends to continue. Sales are catching up with Market Growth as orders rise. Firms are adding to payrolls cautiously as demand expands."


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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 US 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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14 days ago
very good website, and informative.

491 days ago
Style now is very good, the information if continuously updated. Thank you

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