What is a PMI, and why do traders care about it?
Purchasing managers' indices are monthly surveys of business conditions, and they move markets because they arrive early and predict turning points in growth. The 50 level separates expansion from contraction.
Beginners: what confused you about PMI at first? Experienced members: how do you use the manufacturing versus services numbers?
The PMI guide explains how the surveys work and how traders read them.
Background: PMIs explained: the survey data that moves currencies early
Purchasing managers' indexes are among the first economic numbers published each month. What the 50 line means, which PMIs matter and how traders use them.
What does a PMI of 50 mean?
50 is the dividing line: readings above 50 indicate that business activity is expanding compared with the previous month, and readings below 50 indicate contraction.
What is a flash PMI?
An early estimate published before the month ends, based on most of the survey responses. Flash PMIs often move markets more than the final figures.
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