Purchasing Managers' Index (PMI)

The Purchasing Managers' Index (PMI) is an economic indicator that reflects the health of the manufacturing and service sectors. It is based on surveys of purchasing managers who assess factors like new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates expansion and economic growth, while below 50 suggests contraction. Analysts use PMI to gauge economic trends, make investment decisions, and monitor business conditions. It provides a timely snapshot of economic activity, helping businesses and policymakers understand whether the economy is improving or slowing down.