Tuesday, March 21, 2017

Mongolia Sales Manager Index turns up

World Economics:

The Headline Mongolian Sales Managers’ Index (SMI) was 41.7 in March, an improvement from the level of 40.4 in February. The Market Growth Index, when compared the same month in 2016, represents a 26% increase, which indicates the steady progress that the Mongolian economy is making from the low in 2016. 

The private economy is still suffering from severe recession, data suggests that the economy is gradually emerging from the recessionary phase, and may emerge soon into a period of growth. All sub index components of the SMI, with the exception of the staffing index; registered improving levels in March. The Sales Growth Index is still in contraction territory but there has been a continuation of the improving trend, with the rate of negative growth slowly dropping off.

 Prices charged for sales of goods and services are continuing to grow which suggests higher price inflation is to follow at a modestly increasing rate. Managers’ report that the price increases have had a minimal impact on profit margins, indicating higher input costs are the driving force. The mild winter weather has given businesses a slight respite over the past few months but challenging conditions persist.

Economic conditions appear to be improving but are still not showing growth. The new government needs to approve the various large mining projects that are backlogged so that foreign direct investment will come into the country and get the economy moving again.




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