The World Economics Global All-Sector Sales Managers’ Index (SMI) fell to 54.0 in December from 54.4 in November.
Article continues below
]
The index is derived from an average of the Business Confidence, Market Growth, Sales, Prices Charged and Staffing Indexes.
This was the slowest pace on record but nevertheless signalled solid levels of global growth. Furthermore, the rate of economic growth has weakened in each of the past eleven months. By biggest economies covered, the US remained the main contributor to global economic activity, despite growth easing to a record low at the end of the fourth quarter.
China’s economic activity, meanwhile, was broadly unchanged from the previous period but showed signs of steadying after a near two-year slowdown. India, by contrast, saw activity increase at a sharper rate during the latest survey period.
December’s data indicated that both the Global Manufacturing SMI and the Global Services SMI fell to record lows of 53.0 and 54.5 respectively. These index values nevertheless showed robust rates of growth in business activity across the global economy.
Business expectations remained positive and strong during December, with the Business Confidence Index posting 59.5, unchanged from its value in November. Nonetheless, the level of business confidence has weakened for the fifth consecutive month.
Latest survey data also showed the Market Growth Index fall further to a new survey low in December.
The current index figure, however, still indicated modest improvements in global market conditions. Likewise, the Product Sales Index fell for the eighth month running to register the slowest pace since February 2014. That said, the latest reading continued to signal strong levels of sales growth.
Moreover, prices charged continued to rise at a moderate rate during December although the rate of inflation has eased for the sixth successive month.
The Prices Charged Index edged down to 51.7 from 52.0 on the previous period, the lowest level since December 2012. Most panellists cited competitive pressures as the main reason behind the general slowdown in prices charged.
Reflective of slower sales and market growth, employment levels softened for the eleventh month in succession in December. The Staffing Index inched down slightly to reach the weakest pace since November 2012. Among the largest markets monitored, Latin America was the only market to report job losses. ■