U.S. business confidence resurgent after election turmoilStaff Writer | December 19, 2016
The December Headline Sales Managers’ Index (SMI) hit a 14 month high in December as buoyant levels of business confidence returned on the back of strong holiday sales and rising prices, according to World Economics.
America The Sales Growth Index registered minor improvements
Analysis by sector shows that the Consumer Services Headline SMI Index have strengthened to a 8 month high with an index reading of 53.4 while the Manufacturing Headline SMI index also surged in December.
Prices charged have risen in both sectors with manufacturing reporting the higher monthly gains. Managers have indicated that this is a reflection of higher input costs which are being passed on to customers suggesting a probable jump in US inflation in the next few months.
Overall, the U.S. economy is emerging from a 16 month period of slowdown. The latest SMI data supports the prospects of higher growth and inflation in Q4 and into 2017. ■