the Sales Managers' Index- United States - May Data

7/30/2019 the Sales Managers' Index- United States - May Data

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The Sales Managers' Index: United

States - May DataThe American Growth Index

Business confidence remains very high Markets continue to expand Job growth continues

The overall May Sales Managers Headline Index (calculated from an average of the Confidence,

Growth, Price and Staffing Indexes), and reflecting the general state of the US economy, indicates the

US continues to recover rapidly from the Great Recession. For the 19th successive month the headline

Index has remained at levels consistent with significant real advances in economic activity.

Of the individual indexes, the Confidence Index provided the strongest reading in May, reflecting the

considerable belief that business conditions are improving rapidly.

Sales Managers reported that Product Sales (in their own company) increased strongly over thecourse of the last month with a reading of 55.7. The US All Market Growth Index derived from the

views of Sales Managers also recorded a continuing uplift of 52.9 in May and reflects sustained

market growth. Taken together, these data indicate the US economy continues to recover rapidly.

The Prices Charged Index, growth in which has been falling for 3 months, registered 48.9 in May;

indicating Sales Managers are no longer passing on supplier cost increases to clients and are now

discounting products to drive sales. This is the first decrease in 19 months and could be a reflection of

tough competition despite an expanding market.

The Staffing Index (recorded at 51.5) suggests that managers continue to add to payrolls, but the pace

suggests continuing caution despite the good news about market growth.


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For further information media & press enquires please contact:

Ed Jones, Chief Executive

T: +44 (0) 20 7326 8352

F: +44 (0) 20 7326 8351

E: [email protected]


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Notes to Editors

The Sales Managers Index is produced by World Economics and is based on original survey data

collected from a panel of American Sales managers in all sectors of the American economy except

those controlled by the Government. The US Sales Managers Index is released on the 3rd Monday of

each month at 9am EST.

Methodology

The Sales Managers Index results are calculated by taking the percentage of respondents that report

that the activity has risen (Increasing") and adding it to one-half of the percentage that report the

activity has not changed (Unchanged"). Using half of the Unchanged" percentage effectively

measures the bias toward a positive (above 50 points) or negative (below 50 points) index. An

example of how to calculate a diffusion index: if the response is 40% Increasing," 40% Unchanged,"

and 20% Reducing," the Diffusion Index would be 60 points (40% + [0.50 x 40%]). A value of 50

indicates "no change" from the previous month.

The more distant the index is from the amount that would indicate "no change" (50 points), the greater

the rate of change indicated. Therefore, an index value of 58 indicates a faster rate of increase than an

index value of 53, and an index value of 40 indicates a faster rate of decrease than an index value of

45. A value of 100 indicates all respondents are reporting increased activity while 0 indicates that all

respondents report decreased activity.

About the Sales Managers Index

The Sales Managers Indexes are a series of new products available for Africa, Asia and the Americas,

designed to raise the voice and profile of sales people throughout the world. The Sales Managers Indexes

provide the earliest indication each and every month of the direction of economic activity, and the speed at

which its markets are growing.

Sales Managers are unique as an occupational group in being really at the front line of economic activity.

The Sales Manager is ideally placed to feel the first few whispers of caution in the market or to see the newgreen shoots of economic recovery.

The Sales Managers Index brings together the collective wisdom of Sales Managers and consequently

produces the best and earliest source of understanding about whats really happening in the American

economy.

The Sales Managers Index has been developed by World Economics, a leading edge provider of original

economic data. Sister products include the World Economics Journal, the World Price Index, the Global

Marketing Index, as well as the China, India and Eurozone Growth Monitors.

the Sales Managers' Index- United States - May Data

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