World Economy is Rapidly Heading Back into Recession
Diffusion Index. (50 = 'No Change')
The Global Sales Managers Index covers the three great engines of global economic growth of the past decade: China, the USA and India. Together over the past decade, these three countries accounted for 57.8% of global economic growth.
None are proving immune to the serious problems now impacting heavily on global economic activity. The latest Sales Managers Index shows that the world economy is rapidly heading back into recession territory, as the Chinese lockdowns (although moderating) continue to impact heavily on global supply chains; war in Europe drags on and is now damaging global energy and food supplies; and price inflation approaches and in some cases already exceeds 10%, fuelled both by shortages of goods and the lax monetary policies followed by many countries in reaction to Covid.
As a consequence, three out of four growth related Sales Managers Indexes are at near two year lows. The overall Sales Managers Index has tipped into recession with a reading of 49.1, well below the crucial 50 "no change" level. Staffing levels remain way below those seen a year ago.
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