Purchasing managers index (PMI)

The Purchasing Managers' Index (PMI) is an economic indicator that measures the health of the manufacturing and service sectors within an economy. It is based on a monthly survey of purchasing managers in various industries, who are asked about their purchasing and supply chain activities, including new orders, production levels, employment, and supplier deliveries.

PMI values range from 0 to 100, with a reading above 50 indicating expansion in the sector, while a reading below 50 indicates contraction. The PMI is widely used by investors, analysts, and policy makers as a leading indicator of economic growth or contraction, and can provide insights into trends in inflation, employment, and overall economic activity.

The PMI is calculated and reported by various organizations around the world, including the Institute for Supply Management (ISM) in the United States, the Markit Group in Europe, and the Purchasing Management Association of Canada (PMAC).