Economic Concepts Flashcards
1
Q
(Flash) Manufacturing PMI
- What is it?
- What is it used for?
- Why is it important?
A
An estimate of the Manufacturing Purchasing Managers’ Index (PMI) for a country, based on about 85% of total PMI survey responses each month.
A reading below 50 indicates contraction.
PMIs are based on monthly questionnaire surveys of selected companies that provide an advance indication of the performance of the private sector. This is achieved by tracking changes in variables such as output, new orders and prices across the manufacturing, construction, retail and service sectors.
Flash PMIs are among the first economic indicators for each month and provide evidence of changing economic conditions ahead of comparable government statistics, they can have a significant effect on currency markets.
