Purchasing Managers Index PMI

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The survey-based service ‘s June PMI showed that it shrank to 41.2 for the second time in a row

About PMI:

It is a survey-based metric that asks respondents about changes in their perception of key business variables compared to the previous month.

Calculate the manufacturing and service industries separately, and then construct a comprehensive index.

The PMI is a number ranging from 0 to 100.

A PMI reading above 50 indicates expansion when compared to the previous month.

A PMI of less than 50 indicates a contraction, and

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reading of 50 indicates that there has been no change.

If the previous month’s PMI is higher than the current month’s PMI (as in the example above), it indicates that the economy is contracting.

The PMI is usually released at the beginning of each month. As a result, it is regarded as a reliable leading indicator of economic activity.