Our data suggests there is very good news on the horizon based on the indications of economic recovery in China.
As China is the first big economy to emerge after the pandemic shutdown, lots of eyes have been on this market as a way to predict what may be in store for other countries on the brink of reopening.
We have analyzed some of our in-house data and it suggests that a more rapid recovery was in play in China far earlier than assumed. Our data measures the activities of a wide range of large global companies across life sciences, heavy industry, consumer goods, software, defense and beyond. Our technology platforms track new or renewed third-party supplier, agent or distributor relationships, which these organizations leverage to complete sales and provide support for customers. As a result, this activity is an important indicator for corporate sentiment and broader economic health.
Here's an excerpt from an article I recently published on MarketWatch:
"Our data show that resellers were already enjoying a brisk recovery in activity in February and March as China took tentative steps to reopen. Activity rose by 95% and 93%, respectively, in those months compared with a year earlier. As the virus receded, the economy revved up further in April, when activity rocketed by 190% year-over-year. Hong Kong also bounced back in March and April, with gains of 22% and 27%, respectively, after falling 14% in February.
In contrast, Brazil’s continuing lockdown as it struggles to mount an effective response to the virus is reflected in heavy falls in activity from January through May. In April, activity there fell by 74% from a year ago."
It is my hope that as parts of North America and Europe reopen, we will see a similar level of activity to what we have recently seen in China. I believe we have reason to be optimistic.