Saturday, January 21, 2017
Small improvements reported in Mongolian economy
The Headline Mongolian Sales Managers’ Index (SMI) was 38.4 in January, an improvement from the level of 37.0 in December. Year-on-year, the January level represents a 6.5 point increase, which could indicate that the Mongolian economy is slowly showing signs of improvement. All sub index components with the exception of staffing levels registered improving levels in January. The Sales Growth Index is still in contraction territory but there has been an emerging trend of improving conditions, with the rate of negative growth dropping off slowly. Prices charged for new sales have now started to grow, which suggests higher price inflation is to follow. Managers’ report that the prices increases have had a minimal impact on profit margins, indicating higher input costs are the driving force.