World Economics

Indian Sales Managers January Survey Shows Falling Sales and Staffing Levels

• The Headline Sales Managers Index stayed at a 75 month low in January
• The Sales Growth Index fell again significantly, to a 75 month low
• The Jobs Index continued to reflect a growing job market, but once again the rate of growth fell

The problem is not that the Indian economy is in recession. The economy is still growing faster than most other big areas of economic activity, despite effectively slowing down since the two spectacular "hits" to economic activity imposed by Prime Minister Modi in 2016 and 2017, respectively bank note demonetization and the imposition of a government sales tax.

The problem is that the fall in the rate of growth in economic activity seems to be accelerating. Another few months of falling growth, and economic activity may start to actually decline in real terms.

As the US and Chinese economies are now definitely hurting from the Trump trade war, a simultaneous fall in activity in the worlds third biggest driver of economic activity will inevitably produce a synchronized slowdown in global growth.

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