Trader's Glossary

PMI (Purchasing Managers’ Index)

Purchasing Managers’ Index is a leading economic indicator derived by surveying a large cross-section of private sector purchasing managers in the manufacturing, construction and service sectors. The survey consists of questions regarding business conditions including employment production, prices, new orders, deliveries and inventories. A figure above 50.0 indicates an industry that is expanding, a figure below 50.0 indicates an industry that is contracting.