Macro Economics – PMI Leave a comment

Purchasing Managers’ Index (PMI)

What is the Purchasing Managers’ Index?

Purchasing Managers’ Index is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.

KEY TAKEAWAYS

  • The Purchasing Managers Index is a measure of the prevailing direction of economic trends in manufacturing.
  • The PMI is based on a monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity.
  • The value and movements in the PMI and its components can provide useful insight to business decision makers, market analysts, and investors, and is a leading indicator of overall economic activity in the U.S.

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Purchasing Managers’ Index (PMI)

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