Indian Economy Continues to Grow in May

Serious damage caused by Covid remains evident

The First Data on Economic Activity Levels in India - Every Month
The only survey with current month, month-on-month, monthly year-on-year, and forward looking questions
Updated: May 25, 2022

The May Sales Managers Survey results show the Indian economy continuing to climb out of the damage caused by the Covid epidemic.

The Sales Growth Index, reporting on month-on-month growth in companies in the survey, showed further firm upward movement. This index, together with the Market Growth and Business Confidence Indexes all now reflect growth. But growth overall across both Manufacturing and Service sectors remains very modest, and the data suggests that there is now buoyancy in some sectors, but many remain mired in supply chain problems and other after effects of Covid.

Firm upward movement reflects modest economic growth in India

Sales Growth Index
Source: World Economics
Note: Data Shown as a Diffusion Index. (50 = 'No Change', above 50 = Increasing growth, below 50 = Declining growth)

The Jobs, Profits and Prices Indexes produced the most negative results.

The Jobs Index advanced significantly compared with the levels seen in April, but remains below the levels a year ago and way below the 50 level, indicating continuing reluctance to increase investment in staff, given the continuing business uncertainty.

The Profits Index rose significantly month-on-month, but again remains under the 50 mark seperating growth from decline.

Finally the Prices Index remained high and rose once again, indicating strong inflationary pressures remain in the Indian economy.

Strong inflationary pressures remain in the Indian economy

Prices Charged Index
Source: World Economics
Note: Data Shown as a Diffusion Index. (50 = 'No Change', above 50 = Increasing growth, below 50 = Declining growth)

In total, a set of results reflecting an economy still struggling to recover from the problems of the last two years, but gradually moving towards recovery.

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About the Sales Managers Indexes

The Sales Managers' Indexes provide the earliest monthly data on the speed and direction of economic activity in key growth areas of the world.

The SMI’s (Sales Managers’ Indexes) are compiled and analysed by World Economics and are based on survey data collected from a panel of companies stratifying all Industry Classification Board (ICB) sectors which are weighted to reflect their contribution to national Gross Domestic Product.

Key advantages of the SMI's:

• The SMI's provide the first indication each month of the speed and direction of economic growth.
• The SMI's provide the most complete indication of growth, covering all private sector activity.
• The SMI's are based on a key occupational group - sales executives - uniquely able to sense accurate changes in business activity levels.
• The SMI survey base - salespeople - are used by virtually all businesses, including in frontier markets, unlike other occupational groups.
• The SMI's focus on the key countries contributing to over 60% of global growth in recent years.