World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data


The Sales Managers' Index: United States

Business confidence soars to 29 month high

  • SMI Headline Index reflects steady growth
  • Market Indexes demonstrate strong economic activity
  • Price inflation rises for 6 consecutive months

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

Overview
The overall Sales Managers’ Headline Index for March (calculated from an average of the Confidence, Growth, Price and Staffing Indexes). The March Indexes reflect an economy that is demonstrating broad based and stable economic growth.

Business Confidence
The Business Confidence Index increased strongly in March, reaching a 29 month peak in both unadjusted and moving average terms.

A large majority of Sales Managers’ now believe that the coming months will continue to see excellent conditions for business development.

Market Growth
The Market Growth Index suggests that the US economy continues to expand. The Index has now registered expansion for the past 5 months, indicating rapid economic development.

Product Sales
The Product Sales Index represents sales made by panellists’ own companies. The March Index registered 54.2, suggesting sales growth is catching up with market expansion after a slow start to the year.

Sales in both manufacturing and services registered large increases in March, indicating growth has been strong across all sectors of the economy

Prices Charged
The Prices Charged Index indicates that Sales Managers’ are passing on cost increases to clients and businesses at a faster pace than seen in previous months.

Panellists have cited rising business costs (notably labour) and raw material/commodity cost increases as the main reasons for passing on price increases to businesses and consumers.

Sales Managers’ in service industries have been raising prices faster than their counterparts in the manufacturing sectors.

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

The Index shows that the demand generated by the expanding marketplace has led to sustained jobs growth in March, albeit at a marginally slower pace than in February.

Summary
World Economics Chief Executive Ed Jones commented:

"These data suggest growth continues throughout all sectors of the US economy in March. Confidence has been booming over the past quarter, with the March Business Confidence Index reaching an all-time peak of 70.2. This suggests the Sales Managers’ are exceptionally confident about business conditions over the coming months."








 











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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.
 


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’ 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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arjun
12 days ago
very good website, and informative.

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




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