Glossary · from the DESK dictionary
Purchasing Managers Index (PMI)
A monthly economic indicator based on surveys of purchasing managers, measuring current economic activity in the manufacturing or services sector.
In plain words
A reading above 50 signals economic expansion, while a reading below indicates contraction.
What it means for traders
An important, timely macroeconomic leading indicator closely monitored by investors and central banks.
Common pitfalls
Based on subjective survey assessments and can deviate from actual subsequent hard economic data.
Related terms
Business Confidence Index (BCI) · ISM Services PMI · Manufacturing PMI · Philadelphia Fed Manufacturing Index · Tankan Survey
From the DESK dictionary. For information only, not investment advice.
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