ZERO HEDGE — The Sales Managers Index (SMI) is one of the earliest monthly indicators of Indian economic activity. February’s data shows the catastrophic after-effects of the December demonetization 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.
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.
Furthermore, the cash policy has had the effect of forcing up the overall Prices Charged Index (53.6) to levels not seen since spring 2013, when the Rupee was valued at 53.92 against the USD, it is now trading at 67.29. Some panel members are expecting the currency to continue to fall. […]