Released: 31 December 2021
Global Price Inflation Continued to Rise Rapidly in December
The Global Sales Managers Index, bringing together data for the three great economic growth drivers of economic activity (China, India and the USA) shows sales growth and business confidence returning - very slowly.
But, alongside the modest signs of global growth shown by the December data, comes a far less welcome indication of continuing rapid Price Inflation. The December Prices Index recorded a high level of inflation in all three of the world's most significant economies, reflecting another very significant jump in prices of many kinds in December.
Serious supply chain problems provide one obvious reason for the rapid price rises, and the impact of governments everywhere opening the money taps to attempt to preserve economic activity in the face of Covid, provide another. On top of which the latest variant of Covid appears to have cut back growing positive sentiment in the business sectors most impacted by the pandemic.
A second negative is shown by the Staffing Index which came in at a lowly reading, only marginally over the 50 line separating growth in economic activity from decline, suggesting that companies remain hesitant to increase staffing while covid remains untamed. Jobs growth globally has a long way to go to return to pre Covid "normal" levels.
Overall the Sales Managers Indexes reflect modestly optimistic views about business activity in the pre Christmas period, but also illustrate the great uncertainty remaining over the likely course of covid and price inflation in 2022.
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