Purchasing Managers Index

The Purchasing Managers’ Index (PMI) is an economic indicator released by the Institute for Supply Management by month. It evaluates the business conditions of the manufacturing and service sectors of a country. The PMI summarizes whether purchasing managers believe that market conditions are expanding, staying the same, or shrinking. The PMI is used to provide company decision-makers, analysts, and investors with information about changes in business conditions. A reading above 50 indicates the sector is expanding, while a reading below 50 points indicates the sector is contracting.