The American Sales Managers’ Index

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 19^th 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 the course of the last month with a reading of 55.7. The US All Market Growth Index also recorded a continuing uplift of 52.9 in May. 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 even with 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.