PMI (Purchasing Managers' Index) data is an important economic indicator that reflects the health of the manufacturing and services sectors within an economy. It is based on surveys of purchasing managers in various industries and is usually released on a monthly basis.
Here’s what PMI data typically indicates:
PMI Above 50: A reading above 50 suggests that the sector is expanding, indicating economic growth.
PMI Below 50: A reading below 50 indicates contraction, signaling a slowdown or recession.
PMI Around 50: A reading near 50 shows little to no change in economic activity.
There are different types of PMI:
Manufacturing PMI: Reflects the economic health of the manufacturing sector.
Services PMI: Measures the performance of the service sector.
Composite PMI: Combines manufacturing and services PMI.
