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The Purchasing Managers’ Index (PMI) is an indicator of the economic health of the manufacturing and services sector.
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The PMI is based on five major indicators :
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New orders,
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Inventory levels,
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Production,
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Supplier deliveries and
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Employment environment.
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The purpose of the PMI is to provide information about current business conditions to company decision makers, analysts and purchasing managers.
It is a survey-based measure that asks respondents about changes in their perception of some key business variables from last month
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It is calculated separately for manufacturing and services sectors and then composite index is constructed.
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IHS Markit compiles the index.
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The headline PMI is a number from 0 to 100.
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A PMI above 50 represents an expansion when compared with the previous month.
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A PMI reading under 50 represents a contraction, and a reading at 50 indicates no change.
Who calculates PMI? Is this Index fully developed?
Institute of Supply and Management. Read more here http://www.investopedia.com/terms/p/pmi.asp
Yes. It is fully developed and widely used by analysts and stoke brokers to forecast economic conditions.