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The Sales Managers Index: China

Updated: July 18, 2017

China Sales Managers Index Hits 26 Month
High as Sales Growth Accelerates
  • Sales Managers’ Index increases to 52.8, the highest level since May 2015
  • China Market Growth Index slows after highlighting higher than expected Q2 GDP figures
  • Prices Charged Index increases stem from higher factory output costs

Sales Managers’ Index (SMI) data shows that the Chinese economy grew faster in July than at any other time in the past 26 months, picking up pace with a Headline SMI value of 52.8. The recent trend in strong growth for the economy has come from consistent increases in service sector business activity. The Sales Growth Index for consumer goods and services rose to 57.7 in July. China’s Manufacturing sector has also been reporting stronger new orders with the comparable New Orders Index hitting 55.8 this month, the highest value since May 2016. On the back of stronger sales and new orders, sales managers are expressing increased optimism that conditions will improve over the next few months reflected by a Business Confidence Index of 52.1. This value is low by historical standards but still at its highest level for almost two years. The Prices Charged Index registered 52.0 in July, the highest value for 22 months. Price rises have been mostly stable for consumers with the recent price pressures originating from the manufacturing sector, indicating that producer prices are likely to continue growing and prices in export markets may be effected.

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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