What is the PMI Index?
PMI (Purchasing Managers' Index) is an index of purchasing managers. Or an index that indicates the economic condition of production and services produced by 2 major institutions, ISM (Institute for Supply Management) in the United States and IHS Markit Ltd., organized by more than 30 countries around the world. And another institution that provides both public and private institutions, Caixin Media Company Ltd., is information that is useful to investors, analysts and the general public.
The survey will focus on five key variables:
- new orders
- inventory quantity
- production line
- Supply Shipping
- employment
PMI can be divided into 2 indexes:
- Manufacturing PMI : Manufacturing Purchasing Managers' Index
- Non-Manufacturing PMI or Service PMI: Index of Purchasing Managers in the Service Sector
PMI can also reflect future economic conditions. By looking at monthly values and long-term trends.
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