Indian Sales Fall as Demonetisation Effects Hit Small and Medium Size Businesses

The Sales Managers Index provide the earliest monthly data on the speed and direction of Indian economic activity.

The Indian Sales Managers Index (SMI) http://worldeconomics.com/SMI/India-SalesManagersIndex.efp for February, shows the after effects of the December demonetisation policy which was intended to crack down on corruption and “black money”. The February Headline SMI has fallen to an index level of 60.2 in unadjusted terms, the lowest level in over 3 years

Headline sales manager Index

Managers are reporting a big drop in monthly sales for both the consumer and industrial sectors, with small to medium size businesses that predominantly deal with cash transactions, being hardest hit.

Sales growth Index

Prices are rising for both services and manufacturing sector

Price charged Index

February SMI data suggests an erratic situation for Indian businesses as they meet market challenges with considerably lower levels of confidence, slower monthly sales and higher prices caused by the currency situation.

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