Conference Board Q1 2020 Index Update

• The most innovative companies in the Innovation α Index saw a large decline in financial market performance as the COVID-19 pandemic spread.
• Electronic Technology, Technology Services and Consumer Nondurables are gaining dominance among US sectors, especially those that can provide innovative solutions to fight the COVID-19 pandemic.
• In the US, the performance of Distribution Services, Technology Services, Retail Trade, and Consumer Non-Durables sectors was the least negative; however, the Distribution Services and Retail Trade sectors will see a reduced weight in the index going forward.
• Despite global volatility in stock markets, globally the performance of the Retail Trade sector essentially held steady in Q1.

In Q1 2020, The Conference Board Innovation α Index powered by M•CAM for the United States declined by 23 percent and was down nearly 14 percent from a year ago. At the same time, the parallel global Innovation α Index, which tracks innovative companies worldwide, declined by 24 percent, and was down by 14 percent over a year ago. However, the reweighting of sectors in the index is pointing at potential benefits for innovative companies that can help tackle or offset the negative effects from COVID-19.

In this type of supply-side crisis, obviously no sector goes unscathed and this includes the most innovative companies in the United States and around the world.

Bart Van Ark, Executive Vice President and Chief Economist at The Conference Board

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