Global Economic activity rose at solid pace in February
- Global Market and Sales growth increased
- Global Staffing Levels remained stable for 5th month
- Prices charged for goods and services increased
The World Economics Global All Sector Sales Managers’ Index (SMI) is a unique economic activity report covering a wide range of sectors and industries (except those controlled by Government) in 70 countries worldwide.
The Headline Index (calculated from an average of the Confidence, Growth, Sales, Prices and Staffing Indexes) stayed stable in February 58.4. Global economic activity is continuing to rise strongly, but the overall rate of increase is exhibiting a slightly slowing trend with a six month average of 58.7.
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The Business Confidence Index was down by 0.2 to register a value of 65.9 in February. The high level of the Index and the small monthly change indicates that panellists are very confident about future business conditions and this optimism is being reinforced despite the apparent slowdown in global growth.
The Market Growth Index in February was up by 0.2 to register a value of 58.8. This is the second uptick since this index fell gently between June and December. However, despite the recent falls and now improvement in the level of the index it continues to indicate that panellists are experiencing strong sales growth in the markets in which they operate.
The Product Sales Index fell by 0.1 to register a value of 58.2 in February. The index has been moving in line with the Market Growth Index indicating that companies are realising the opportunities provided by the markets they operate in.
The Prices Charged Index increased to 54.8 in February after sixth consecutive monthly falls to December. Prices are rising across the globe, but the overall rate of inflation has eased back a little with a differential pattern being displayed between manufacturing and services.
The Staffing Index indicates that employment continues to grow at a steady rate across the globe. The Index remained stable to stay at the 55.1 level, which is very close to the average level of the Index of 55.2 over the last twelve months.
World Economics Chief Executive Ed Jones commented on the release:
“The Headline Index for February indicated that global economic demand in both the manufacturing and the services sectors continued to rise at a stable rate. The ability of firms to capture market opportunities combined with falling inflation appears to be reinforcing business confidence.”