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The Sales Managers Index: China

Released: January, 2017

SMI for China Reflects Buoyant Start to 2017

  • Chinese Yuan remains undervalued by close to 24%
  • Market Growth Index improves to a six month high
  • Prices Charged remain stable

Sales Managers’ Index (SMI) data shows that the Chinese economy continues to grow in January, at a slightly faster pace than in December. The service sector (54.4) is continuing to outpace manufacturing (52.6) as it leads private sector growth in new sales terms. The Headline SMI (51.4), which measures the overall state of the economy reflected modest growth in the month, confirmed by improvements in the Sales and Market Growth sub-indexes. The Prices Charged Index continues to reflect a significant change in price pressures over the past year with the manufacturing sector reporting the largest price increases. Business confidence has growth from a low in September to register 51.0 in January – this level is low by historical standards but improving sentiment is being vindicated by improving sales and market growth. The jobs market appears to be flat but are with factories taking on more new staff than the service sector. The Chinese Yuan remains very significantly undervalued compared with the U.S. Dollar registering -24% on the World Price Index (WPI) scale (see below).

Headline Sales Managers' Index

Prices Charged Index

Sales Managers' Index Trends

Direction Speed
SMI Growing Slowly
Business Confidence Growing Very Slowly
Market Growth Growing Slowly
Sales Output Growing Solidly
Prices Charged Growing Faster
Staffing Levels Growing Very slowly
Profit Margins Growing Stable

Market Growth Index

                                                                          World Price Index under/overvaluation January 2017

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 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.
About the Sales Managers’ Indexes
About the Sales Managers’ Indexes
About the Sales Managers’ Indexes
About the Sales Managers’ Indexes
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