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The Sales Managers Index: China

Updated: May 15, 2017

China Sales Managers’ Index Hits 6 Month Low in May
  • Sales Managers’ Index slows to 51.6, the lowest level since November.
  • Non-Manufacturing sector growth continues to outpace manufacturing industry.
  • The Prices Charged Index continues to rise, indicating building inflationary pressures.

Sales Managers’ Index (SMI) data shows that the Chinese economy continued to grow in May but at a slower rate than has been the case for some time. The Headline for China SMI slowed to the lowest level since November last year. Leading the slowdown is the drop in the Market Growth Index from 52.0 in April to 50.9 in May. Even though sales have remained stable in May sales managers have expressed worry that the overall growth trend can’t continue. Panellists have explained that their companies have been lowering capital expenditure, inventories of stock, and limiting their exposure to underperforming accounts to increase their capacity against possible coming risks and future challenges. The Prices Charged Index remained stable in the Manufacturing sector in May with a value of 51.7. The Non-Manufacturing sector that represents consumer goods and Services; increased to 51.4. Business optimism continues to remain tepid overall, however managers in the Service sector were significantly more upbeat than those in the Manufacturing sector, showing once again that China is becoming more services and consumer orientated.

Sales Managers' Index (SMI)

The Headline Sales Managers’ Index (SMI) – a composite indicator designed to provide the most up-to-date assessment of business activity.

Business Confidence Index

The Business Confidence Index measures the level of optimism/pessimism amongst sales for future conditions.

Market Growth Index

The Market Growth Index monitors the underlying growth of the market segments into which the panel members sell.

Sales Growth Index

The Sales Growth Index defines the speed and direction of overall sales of goods and services made by business during the month.

Prices Charged Index

The Prices Charged Index measures the speed and direction of changes in the current price of goods and services taking into account any discounts offered.

Staffing Levels Index

The Staffing Levels Index monitors the level of growth or decline in employment against the same period a year earlier.

About China SMI Data

The Sales Managers Index provide the earliest monthly data on the speed and direction of  the China's economic activity.

Key advantages of the China SMI:
  • The SMI provides the first indication each month of the speed and direction of economic growth in China.
  • The SMI provides the most complete indication of growth, covering all private sector activity.
  • The SMI is based on a key occupational group - uniquely able to sense changes in business activity levels.
  • The SMI is composite index of business confidence, market growth, sales, prices charged and staffing levels.
  • The SMI is a diffusion index, any index value above 50 indicates growth and below 50 indicates contraction.

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