Released: 24 March 2021
March US Sales Managers Survey:
Prices Rising Fast, Job Market Weak, But Confidence Rises
The most serious negative to emerge from the March Sales Managers Survey is the continuing price inflation experienced by Sales Managers since late 2020. The price increases are significant as economic activity throughout the world remains depressed well below pre Covid levels, and vast new quantities of money are now circulating, particularly in the USA. The chances of the re-emergence of significant price inflation over the next year continues to increase.
Given the significant increase in broad based money supply since the Covid virus arrived last year (the biggest jump seen in 150 years), it isn't surprising that inflation expectations are also rising. These survey results confirm that these expectations are soundly based.
United States: Prices Charged Index
The Staffing Index also continues to provide unwelcome news. The Index, although well up on the dismal February reading, once again stayed below the 50 "no change" level. Given the increasing activity levels this means employers overall continue acting with considerable caution in relation to staff recruitment.
United States: Staffing Levels Index
Much of the headline economic news has focussed of late on the prospects for a big rebound in economic activity in 2021. But much of the data accompanying this news is based on forecast GDP levels in relation to the very depressed levels seen in 2020. The reality lies in comparisons made with pre Covid 2019 levels. Viewed in this perspective the prospects are much less bright.
Access United States SMI Charts & Data
- HEADLINE SALES MANAGERS’ INDEX (SMI)
- BUSINESS CONFIDENCE INDEX
- MARKET GROWTH INDEX
- SALES GROWTH INDEX
- PRICES CHARGED INDEX
- STAFFING LEVELS INDEX
- CURRENCY STRENGTH INDEX
- PROFIT MARGINS INDEX
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