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PMI (Purchasing Managers' Index)

A monthly survey of business activity where a reading above 50 signals expansion and below 50 signals contraction.

ISM publishes manufacturing and services PMIs for the US in the first week of each month; S&P Global publishes flash versions for many countries. PMIs lead gdp because they measure new orders and hiring intentions.

A sharp drop below 50 is one of the earlier signs of slowdown.

Example: ISM manufacturing prints 47.2, a 16th straight month below 50, while services prints 53.5. The economy is growing on the services side and contracting in manufacturing.

Related: gdp, economic-calendar, unemployment-rate, sector-rotation

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