Purchasing Managers Index

The purchasing managers' index (PMI) is a vital economic indicator

that gauges the health and direction of the manufacturing and services
sectors. It analyzes crucial factors such as inventory levels, production
output, and employment levels to identify signs of economic growth or
contraction. By providing valuable insights, the PMI serves as a crucial guide
for business decision-makers and investors.

The Institute for Supply Management (ISM) calculates the PMI monthly,
assigning a numerical value between 1 and 100 to represent the industry's
performance. An index score above 50 indicates an expansion in the sector,
while a score below 50 signifies a contraction. A score of 50 implies no
change.
 The Purchasing Managers' Index is derived from an ISM survey
distributed to senior executives in the manufacturing industry. The survey
delves into five key areas: new orders, inventory levels, production output,
supplier delivery times, and employment levels.