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Purchasing Managers’ Index (PMI)

The Purchasing Managers’ Index (PMI) is a monthly economic indicator that measures the prevailing direction and trends in a particular sector of the economy. It surveys purchasing managers at businesses across different industries, asking them to rate the level of business conditions such as employment, production, new orders, inventory, and prices. The PMI is calculated as a weighted average of these sub-indices, with a score above 50 indicating that the sector is expanding, and a score below 50 indicating that the sector is contracting. The PMI is widely used as an important indicator of economic health and is closely watched by investors and analysts in the financial markets.

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