Thought for the day

Indian Economy Heads Back into Recession in July

12 August 2022
The overall Sales Managers Index fell further under the 50 no growth line to a 22 month low. The Sales Growth Index fell sharply losing 2.6 Index points, and plunging to a 22 month low. The Market Growth and Business Confidence Indexes both fell to new year-plus lows. The Staffing Index fell dramatically again to record a 12 month year-on-year low. Despite the downbeat sales data, prices continue to rise fast, but the good news is, the rise has slackened significantly

The Indian economy is slowly tipping back into recession according to the latest (July) data from the Sales Managers Monthly survey.

Sales managers are very much the "front line" in terms of sensitivity to changing business conditions. Sensitive to contractual negotiations being deliberately slowed down. Sensitive to expected contracts "in the bag" being suddenly cancelled. And most of all sensitive to "budgetary problems" being increasingly cited as reasons for sales negotiations faltering.

All of these conditions are present today in many markets in India leading to the July Sales Managers Index falling to a new low. Very little general good news is apparent from the survey, although some sectors of economic activity continue to thrive.  See more data...

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