The American Growth Index

• Business confidence remains very high
• Markets continue to expand
• Job growth continues

The overall May Sales Managers’ Headline Index (calculated from an average of the Confidence, Growth, Price and Staffing Indexes), and reflecting the general state of the US economy, indicates the US continues to recover rapidly from the Great Recession. For the 19th successive month the headline Index has remained at levels consistent with significant real advances in economic activity.

Of the individual indexes, the Confidence Index provided the strongest reading in May, reflecting the considerable belief that business conditions are improving rapidly.

Sales Managers’ reported that Product Sales (in their own company) increased strongly over the course of the last month with a reading of 55.7. The US All Market Growth Index derived from the views of Sales Managers also recorded a continuing uplift of 52.9 in May and reflects sustained market growth. Taken together, these data indicate the US economy continues to recover rapidly.

The Prices Charged Index, growth in which has been falling for 3 months, registered 48.9 in May; indicating Sales Managers are no longer passing on supplier cost increases to clients – and are now discounting products to drive sales. This is the first decrease in 19 months and could be a reflection of tough competition despite an expanding market.

The Staffing Index (recorded at 51.5) suggests that managers continue to add to payrolls, but the pace suggests continuing caution despite the good news about market growth.

The Sales Managers’ Index is produced by World Economics and is based on original survey data collected from a panel of American Sales managers in all sectors of the American economy except those controlled by the Government. The US Sales Managers’ Index is released on the 3rd Monday of each month at 9am EST.

The Sales Managers’ Indexes are a series of new products available for Africa, Asia and the Americas, designed to raise the voice and profile of sales people throughout the world. 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 American 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, as well as the China, India and Eurozone Growth Monitors.