All US Sales Managers Indexes fell in January. The Sales Growth Index fell most dramatically to a 29 month low, with an index reading of 48.9, significantly below the 50 no-growth line, indicating a major shift in sales since pre-Christmas levels.
US Prices Charged Index: January
Diffusion Index. (50 = 'No Change')
The overall Sales Managers Index, combining results from all the growth related aspects of the survey, fell to a 7 month low, and also fell significantly below the 50 ‘no-growth’ level to an index reading of 49.2.
There seems little doubt that the Federal Reserve's interest rises are taking the shine off already uncertain confidence levels in many US corporations.
Business confidence among sales managers did indeed continue its fall back from the far more optimistic views expressed in Q3 last year, to much more cautious views on the likelihood of growth in economic activity over the next few months.
The most positive aspect of the January data is without doubt the Prices Charged Index. Although this Index continues to reflect price inflation across many product and service sectors, the rate of increase has slowed very considerably, to a 28 month low in January. Price inflation has not yet been vanquished, but it’s no longer looking likely that 2023 will see price inflation continue at the elevated levels seen for much of 2022.
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