PMI stands for Purchasing Managers’ Index, which is a leading economic indicator that measures the health of the manufacturing sector and the overall economy. It’s calculated based on a survey of purchasing managers, who are asked about their company’s performance in several areas, including new orders, production, employment, supplier deliveries, and inventory levels.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signals contraction. PMI data can be used by economists, investors, and policymakers to gauge the direction of the economy, identify emerging trends, and make informed decisions.
PMI is published on a monthly basis by a variety of organizations, including the Institute for Supply Management (ISM) in the United States and Markit Economics in Europe.
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